People v. Welk Resort Group CA4/1

I. INTRODUCTION

Seeking to rescind their timeshare agreement and recover damages, Cheri Graham and April Barkley (Appellants) filed a motion for relief based on a stipulated judgment between Welk Resort Group, Inc. (Welk) and the People of the State of California (People). The trial court denied the motion, finding Appellants ineligible for relief on both procedural and substantive grounds. On appeal, Appellants claim the trial court’s ruling lacked substantial evidence. We disagree and affirm.

II. FACTUAL AND PROCEDURAL BACKGROUND

A. The Stipulated Judgment On June 5, 2020, the trial court entered a stipulated judgment resolving the People’s unfair business practices and false advertising

complaint against Welk.1 A provision in the judgment established a restitution program under which dissatisfied timeshare owners could recover damages from Welk, including cash payments, resort credits, or timeshare points. Eligible owners were those that bought their timeshares between January 1, 2011, and March 31, 2016. The judgment divided timeshare owners into two categories: “Known Purchasers” and “Claimant Purchasers.” Known Purchasers were timeshare owners who submitted a…