When to Consider Mediation for a Timeshare Exit Dispute

 

When to Consider Mediation for a Timeshare Exit Dispute: client shaking hands with his lawyer

Timeshare developers do their best to make sure that timeshare exits aren’t easy. They throw up roadblocks, make you jump through hoops, and make the process to get out of a timeshare as slow and difficult as possible. When you hit a wall during the process, it might make sense to have a third party try to help you and the company come to a resolution. When to consider mediation for a timeshare exit dispute, however, is a complicated question that doesn’t have one answer.

 

At its most basic form, mediation is a guided negotiation between two parties – here, the timeshare owner and the developer – helped along by an allegedly neutral third party. Most often, this would happen where there is a legal claim, like misrepresentation by a salesperson in a high-pressure sales presentation. While mediation sounds like a good idea, in practice it can be complicated and dangerous.

 

This article will look at the use of mediation in the case of timeshare exits. In particular, we’ll look at times when you have to use it and the pros and cons of the process. We’ll also talk about who a mediator is and what their role should be, in case you ever have to mediate. 

 

How Does Mediation Work in Resolving a Timeshare Exit Dispute?

When to Consider Mediation for a Timeshare Exit Dispute: person using a magnifying glass to read a contract

Different people may have different meanings for the word “mediation,” but in general it refers to a process where two or more parties are helped to negotiate a solution to a dispute by a third party. Because it’s a somewhat less formal process, it doesn’t have a strict procedure like a trial in a court would. It is, however, still commonly used to resolve legal disputes. The two scenarios that typically occur are outlined below.

 

1. When You Mediate Because the Contract Says You Have To

In the case of a timeshare, check the fine print. You may be forced to mediate if your timeshare agreement has an alternative dispute resolution (ADR) or binding arbitration clause. Often, your timeshare contract will restrict your ability to sue or bring any kind of legal claim — even a claim for breach of contract — against a developer without first engaging in mediation or arbitration

 

In cases like this, a developer is simply using the ADR process to slow down your claim against it. It’s possible that a mediation might work here, but unlikely. The reason is that these kinds of mediations are frequently used by timeshare companies that they often use the same mediators and are “repeat customers” of those mediators. This means they have a better handle on the intricacies and the people involved, and they can use mediation to their advantage.

 

2. When You Choose Mediation as an Option

Mediation can be more helpful in a timeshare dispute if both parties are engaging in it voluntarily. Many court systems feature free or low-cost mediation programs, set up as a result of state laws to help timeshare owners speed up their claims, save money, and negotiate for a better result. 

 

While these programs look like a good option on the surface, they’re only useful if the timeshare company will participate in good faith, which is never the case. Timeshare companies go for the throat of the client 100% of the time and typically end up winning. 

 

Plus, in the event that the mediation becomes a binding arbitration, you will have other worries.  As a parting gift from the arbitration, developers often successfully pass on their legal fees to the client.

 

Ultimately, mediation for a timeshare exit should only be chosen willingly as a last resort when there are no other options left.

 

What Are the Advantages and Disadvantages of Using Mediation Over Going to Court?

Couple talking to a lawyer

There’s a reason that timeshare developers use mediation so much, and it’s not because mediation is better for owners. Companies use it because it’s cost-effective, and they are usually happy with the results, which in the context of exit disputes can mean owners are left out in the cold.

 

That’s not to say that mediation is worthless. In certain cases, suing a timeshare developer in court will be expensive and time-consuming, and you might be able to use mediation to help. Most of the time though, mediation can make things worse for timeshare owners. The pros and cons of mediation (as opposed to a legal action) are detailed below. Note that these are generalizations; specific legal advice may be needed for individual cases.

 

Advantages: Cost and Informality

Mediation doesn’t cost as much as a lawsuit, which will certainly require you to shell out for filing fees, witness fees, court costs, and other amounts before you even get to timeshare attorney fees. A lawsuit can also take years to resolve, with fees and costs piling up the whole time. 

 

The drain on your time and finances in addition to trial law firm fees can make going to court difficult or impossible. While that fact does not necessarily make mediation a great option, it does explain why some people have chosen it.

 

Another reason that lawsuits take such a long time are the formal legal requirements of a trial, particularly regarding evidence. Because mediations don’t have those rules, the process can move faster.

 

Keep in mind, though, that “less formal” doesn’t mean that you shouldn’t be on guard. Centerstone Group highly recommends that owners get legal counsel even for mediations, as the developers will certainly try to run roughshod over them without a lawyer to keep them in check.

 

Disadvantage: The Developer Is Better at Mediation Than You

Chances are that you’ve never been to a mediation before. Timeshare developers do thousands of them every year, and they retain experienced legal teams who are experts in the process. So while you’re struggling to get a handle on what’s going on, they’re planning the most efficient line of attack against you. With such a large power and experience difference, it can be very hard to mediate if you don’t have an expert by your side.

 

Also keep in mind that the developer might use mediation to delay your exit from the timeshare contract. Remember that the longer they keep you where you are, the longer they can charge you for annual maintenance fees, special assessments, and other costs that make your timeshare such a financial burden. Because mediation is a process that doesn’t resolve unless both parties want it to, a developer could waste a lot of time in mediation and then ultimately refuse to agree to let you exit.

 

One of the biggest perils in mediation can come when the developer asks an owner to validate or reaffirm their timeshare contract. In that case, you might leave a mediation not only without a resolution, but you can also find yourself deeper in the trap. There is a huge risk that new legal contracts and affirmations can leave you in a worse position than you were in at the outset of the mediation.

 

How Do I Find a Qualified Mediator for My Timeshare Dispute?

Senior entrepreneur smiling at the camera

If your timeshare contract requires you to mediate, it will likely also require you to obtain a mediator from a specific pool of candidates that have already been approved by the developer. (This is another problem when mediating with timeshare companies.)

 

If you’re shopping for a mediator, the best ones tend to be retired judges or lawyers. They often work with organizations like JAMS ADR or the American Arbitration Association, which has an online “Find a Mediator” tool.

 

Remember that finding a qualified mediator only gets you so far. Even the best mediator can’t get you a good result with a company that isn’t operating in good faith. Therefore, it’s also important to have an expert by your side who understands the process, when it’s most likely to work, and when mediation is just being used by the developer to end the exit process and ensure that you can never leave.

 

Ask Centerstone Group When to Consider Mediation for a Timeshare Exit Dispute

Timeshare cancellation and exit disputes can be confusing and difficult, but you don’t have to go through it alone. Centerstone Group is the top timeshare exit company, with thousands of satisfied clients and an A+ rating from the Better Business Bureau, with 4.79-out-of-5 stars. We have decades of experience in the timeshare industry, so we know the best methods for a timeshare exit dispute. 

 

In addition, we understand the mediation process in multiple states and countries. We can help you fight back with our processes, which are designed to help you get out of your timeshare without the need for mediation or the risks associated with it.

 

If you’re stuck in a timeshare and considering litigation or mediation with your timeshare company, we urge you to contact Centerstone Group today for a free consultation regarding possible exit strategies. Let us see what we can do for you.

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