Searching over 5,500,000 cases.


searching
Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.

Diamond Resorts Corp. v. Brown

United States District Court, D. Nevada

July 23, 2019

DIAMOND RESORTS CORPORATION, a Maryland corporation; DIAMOND RESORTS HOLDINGS, LLC, a Nevada limited liability company; and DIAMOND RESORTS INTERNATIONAL, INC., a Delaware corporation, Plaintiffs,
v.
KYLE BROWN, an individual; MARTIN BROWN, an individual; EXCHANGE POINTS CLUB, LLC, a Florida and Missouri limited liability company; PREMIER REWARDS LLC, a Missouri limited liability company; VMG RESORTS LLC, a Missouri limited liability company; VACATION MANAGEMENT GROUP, LLC, a Missouri limited liability company; and OWNER EXTRAS LLC, a Missouri limited liability company, Defendants.

          ORDER GRANTING IN PART AND DENYING IN PART PLAINTIFFS' MOTION FOR A PRELIMINARY INJUNCTION [ECF NO. 2]

          ANDREW P. GORDON UNITED STATES DISTRICT JUDGE

         This matter came before me on July 18, 2019 on the Motion for a Preliminary Injunction (ECF No. 2) filed by plaintiffs Diamond Resorts Corporation, Diamond Resorts Holdings, LLC, and Diamond Resorts International, Inc. (collectively, the “Diamond Entities”).

         STANDARD TO OBTAIN PRELIMINARY INJUNCTIVE RELIEF

         Preliminary injunctive relief is warranted where the moving parties shows: (1) a likelihood of success on the merits, (2) that they are likely to suffer irreparable harm in the absence of such relief, (3) that the balance of equities tips in their favor, and (4) that granting an injunction would be in the public interest. Winter v. Natural Res. Def. Council, Inc., 555 U.S. 7, 20 (2008).

         FINDINGS OF FACT

         1. The Diamond Entities are a collection of interrelated businesses that market and sell timeshare interests, manage resorts and multi-resort trusts, and operate points-based vacation clubs.

         2. In tandem with their hospitality and management services, the Diamond Entities' core business is the marketing and sale of timeshare interests.

         3. The purchasers of those timeshare interests (“Collection Members”) acquire, through their purchase, “Points, ” which act as currency that is exchangeable for occupancy rights in accommodations at resorts within the Collection Members' timeshare programs and at other Diamond-affiliated resorts (collectively, the “Resorts”).

         4. The Points that Collection Members purchase are personal to each Collection Member. Under the terms governing the Diamond Entities' timeshare programs, Collection Members are not permitted to employ their Points for a commercial use, including by renting them out for use by non-Collection Members.

         5. Collection Members typically reserve their Resort accommodations online, applying their Points to the purchase of reservations at the Resorts through their unique username-and-password-protected Collection Members' portal account (“Member Portal Account”), which is hosted and managed by the Diamond Entities.

         6. Diamond Resorts Holdings, LLC is the owner of multiple marks (the “Diamond Marks”), which the Diamond Entities use in coordination with each other to market, and communicate with the public and their Collection Members about, the Diamond Entities' various products and services.

         7. The Diamond Marks include the marks DIAMOND RESORTS INTERNATIONAL®, DIAMOND RESORTS®, DIAMOND PLUS POINTS®, and The Club®.

         8. The Diamond Entities filed their Motion for a Preliminary Injunction in response to a scheme in which some or all of the Defendants are selling unauthorized access to the Resorts to their customers. That scheme involves three steps:

a. First, Defendants have gained control of Points that have been sold to Collection Members. They have done this by calling Collection Members and using the Diamond Marks and other deceptive means to suggest affiliation with the Diamond Entities. The Defendants' sales agents have induced Collection Members to permit some or all of the Defendants to rent use of their Points. As part of this transaction, the Collection ...

Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.