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Posted by: carolyn (
Date: December 24, 2008 04:03PM

Royal Palm maintaince went from $800 to $1200 and there is a class action suit STARTED against Diamond Restores. Flamingo maintaince bill are not out yet but I assume we will be hit the same way. The reserve Account has been used to repay the developer for loans.NO DETAILS WERE PROIVED PLEASE READ THE UNDER REPORT FROM OWNERS AND SIGN UP FOR THE CLASS ACTION SUIT

By this time you may have gotten the outrageous Maintenance Bill from Diamond Resorts. Everyone here is livid.

Because I was involved with a similar situation at the Atrium where we got an injunction from the SXM courts they unfortunately want me to be the point-person. I am trying however to keep a low profile. I have pasted below some information so you know what is going on:

I met with the attorney this morning who represents both Atrium and Sapphire timeshare owners. Their offices will be closed now until Jan. 6th but she was kind enough to see me this morning at 9.

There was a general meeting yesterday called by Marcel wherein he presented the 2009 budget and conveyed the justifications for the increase. After about an hour many if not all of the owners present put their name on “the list”. It was only because of this fact that I agreed to meet with the lawyer.

The attorney believes that the contracts provide that the increase be no greater than the Neth. Antilles CPI which was 4%.

Only after reviewing multiple contracts will she provide an opinion.

We also believe that the owners that paid very low prices for their weeks at other times of the year will not pay the $1182.42 and default on their units resulting in Diamond getting them back to sell. In other words they will probably never achieve their intended maintenance fee target. BTW, Diamond added nearly $1,000,000 in Management and Support Fees to this year’s budget.

We were also told that the so-called Reserve Account ($180 in 2008 and $230 in 2009) has been used to repay the developer for “loans” no details were provided. Monique will be requesting copies of loan-documents and the authority to use a Reserve Account for such purposes/

She is emailing me later today a letter that states that under Netherlands Antilles law, if you do not join as a petitioner against the resort you do not get the benefit of the settlement. In order to be fair to the owners I have calculated that the legal fees necessary to initially support this and create a small reserve will be $50 per week owned.

Checks are to be made out to:

Bermon Law Office

We will be represented by: Monique m. Hofman

The address of the law firm is:

Frontstreet 6, Suite 3


Sint Maarten

Netherlands Antilles

If you want to make a bank transfer:

Send to JPMorgan Chase Bank

Fed Wire ABA 021 000021

For Onward credit to:

Scotiabank St, Maarten

Philipsburg, St. Maarten, N.A.

Acct # 001058925

For credit to:


Acct. # 001000843

I asked what we are to pay. Subject to the review of contracts which will be done prior to the Jan. 15th due date she suggests it be last year’s maintenance of $708/wk + 4% (the Netherlands Antilles CPI).

This will be confirmed. Please allow emails form

I have asked that an email account be established here and a general website where current information will be posted. When I get that information I will let you know, as I want to step out of the limelight and let Monique handle this.



Posted by: carolyn (
Date: December 25, 2008 05:23PM

Dear Royal Palm Beach/Flamingo Owner:
Join other owners concerned about the meteoric rise in maintenance fees at Diamond Resorts International's Royal Palm Beach Club and Flamingo Resort.

Presently a group of Royal Palm timeshare owners who are at the Royal Palm Resort have begun the formation of a litigation group. Today a representative of the ad hoc group met with the same local attorney in St. Maarten that represents timeshare owners at both Atrium and Sapphire resorts faced with the similar problems.

The Bermon Lawoffice in St. Maarten has agreed to represent the owners who are interested in protecting their rights. An email address has been established with a Netherlands Antilles Internet service provider. All communications should be addressed to .

At the present time we believe that Diamond Resorts has exceeded the contractual terms and conditions that are contained in the contracts signed by all who purchased at these resorts. It should be noted however that there have been a number of different owners of these resorts beginning with Pelican. Depending upon when you purchased your unit the terms and conditions may differ.

In addition it was disclosed at a general meeting yesterday that an unknown portion of the so-called "Reserve Fund" has been used to repay "debt" owed to the developer. Our attorney intends to learn exactly what portion of Reserves was used as well as the terms and conditions. It was also announced at this same meeting that Diamond Resorts has increased their Management Fee $453,746 and added an Administrative Support Fee of $576,025. This additional $1,000,000 applies only to the Royal Palm. We have not seen Flamingo's 2009 Budget.

It is the goal of the ad-hoc group presently being formed to have our attorney first determine the specific rights of the owners. Our attorney will contact the resort owner and attempt an amicable resolution. If this is not possible, the litigation group intends to seek relief from the courts in St. Maarten. The same relief obtained by this law firm for Atrium and Sapphire owners.

Typical terms and conditions found in the other contracts include that maintenance fees cannot exceed the Netherlands Antilles Consumer Price Index (CPI) which is presently 4%. Original owners at Royal Palm and Flamingo are believed to have used the same "Pelican" contract used at the Atrium as Pelican owned all three resorts.

In order to properly ascertain the specific terms and conditions we are asking that you locate your contract; scan the terms and conditions and email here for attorney review. Please also include the description of the weeks owned and the legal name of ownership if they are not apparent on the contract.

At present we are estimating that a contribution payable to the attorney would be $50 per week owned.
Some have been eager to send money immediately as the retainer of the law firm must be paid before representation commences. We ask that you do not send any funds quite yet as the more people that respond the smaller the initial contribution.

Important Note.
Legal counsel has advised that there is no concept in Netherlands Antilles law similar to a Class Action lawsuit. Unless you are a listed petitioner you would not benefit from either a settlement or the judge's ruling.

In the interest of full disclosure the owners presently here in St. Maarten have agreed to fund the entire initial retainer ($1500). The law firm bills $200/hour plus 6% overhead. As soon as we collect the initial retainer the will become Group #1 as we do not intend to delay our actions. Subsequently additional groups will be formed by the attorney. This is the same procedure used at the Atrium.
The law firm that will represent us is:
Bermon Lawoffice and Legislative Services; Attention Attorney Monique Hofman. All funds collected will be sent directly to the lawoffices.

At this point we need to register names; weeks owned and get examples of contracts as there were different ones over the years. If you would like to block out your purchase price prior to scanning please do so.

Attorney Hofman has been provided with copies of Royal Palm maintenance bills that were sent out Dec. 22 and have a due date of Jan. 15th. Any action taken will occur prior to the due date and should you join the ad-hoc group you will be notified of what amounts to pay.

There is a concern that those owners who purchased inexpensive prices for their weeks (as compared to those presently on-island who paid premiums for weeks 50/51/51/1 will not pay $1,177.42 for 2009. This may cause owners to give up their units and will certainly result in a major shortfall in the expected maintenance fees causing Diamond Resorts to have to make up the difference. With an economy in such terrible shape and banks' unwilling to lend this misadventure of increasing fees in excess of 30% whether legal or not is inappropriate. It will also result in Diamond Resorts taking these units back and having more units to sell.

Thank you for your attention and wishing you the best of holiday wishes.

The Timeshare Owners Ad-hoc Litigation Group (In formation)

Date: December 26, 2008 06:16PM

Dear Carolyn:
Thank you for posting your news about our group. Please understand however that there is no "Class Action Suit". Dutch law does not recognize that legal concept. Unless a timeshare owner is a listed Petitioner they cannot be represented by our attorney nor be included in an settlement or court decree.
We urge those that read your post to FedEx immediatly $50/unit/week owned at either Royal Palm or Flamingo to:
Bermon Law Office
Attention: Monique M. Hofman, Esq.
Frontstreet 6, Suite 3
Sint Maarten
Netherlands Antilles

If cheques are sent by mail they will take weeks to arrive.

Anyone sending a cheques needs to also email and advise in advance the amount of the cheque and the unit # and week(s) owned.

Thanks for your Post.

The Timeshare Litigation Group

Date: December 26, 2008 11:32PM

We are pleased to advise that our litigation group has arranged to accept most major credit cards for payment of the legal retainer and associated expenses. Timeshare owners at Royal Palm Beach & Flamingo Beach Resorts may request e-Invoices to pay by credit card by emailing to request an e-Invoice.
There is a small service charge associated with using our third-party e-commerce service.

The Timeshare Owners Litigation Group

Posted by: Barbara1 (Moderator)
Date: December 27, 2008 07:30AM

I think this thread is done. I don't believe there is any more information to be shared. The 2 parties may continue their discussion privately, if they desire.


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