Adams v. Raintree Vacation Exch., LLC

Plaintiffs are 250 purchasers of timeshare interests in a resort in San José del Cabo, Mexico. They bought the interests between 2004 and 2006 from a Mexican company, DTR, which no longer exists. Each contract stated that “in case of controversy … the parties hereby agree to submit themselves to the applicable laws and competent courts of the City of Mexico, Federal District, expressly waiving any other forum that may correspond to them by reason of their present or future domiciles.” Plaintiffs allege that Raintree and Starwood defrauded them by “pretend[ing] to have a Mexican subsidiary (DTR) take in money for [villas] that would never be built.” The district court dismissed for improper venue. The Seventh Circuit affirmed, noting that, even if the contracts of sale are fraudulent, it doesn’t follow that the clause is. The clause is not "unclear, in illegible print, in Sanskrit or hieroglyphics, or otherwise suggestive of fraudulent intent." There is no evidence that the defendants tried to mislead the plaintiffs concerning the meaning of the clause, or selected a foreign forum to make it difficult for the plaintiffs to enforce their rights under the contracts. Mexico was where the contracts were to be performed. View "Adams v. Raintree Vacation Exch., LLC" on Justia Law