Bass Pro settles for $40M with timeshare company

Outdoor retailer Bass Pro settled a lawsuit against a timeshare company which it alleged breached contractual obligations by failing to pay required commissions and engaging in high-pressure sales.

Bluegreen Vacations Unlimited Inc., which is based in Boca Raton, Florida, agreed in the settlement to pay Bass Pro $20 million within 15 days of the settlement, as well as $4 million annually for five years, the company said in a statement.

Bass Pro and its affiliated company, Big Cedar LLC, sued Bluegreen in 2017 in the U.S. District Court for the Western District of Missouri. The Bass Pro plaintiffs alleged that under a 2007 marketing agreement, Bass Pro allowed Bluegreen to access certain Bass Pro retail stores in exchange for a commission on Bluegreen’s sales of timeshares.

Bass Pro alleged Bluegreen breached provisions of the agreement, which provide protection to its customers and ensure Bass Pro received fair compensation.

In April, the company cancelled Bluegreen’s access to Bass Pro Shops’ marketing channels and advertising materials, prompting Bluegreen to file a counterclaim.

As part of the settlement, the parties agreed to a release of all claims. Bluegreen did not admit any wrongdoing.

The parties additionally agreed to changes in customer-service policies and procedures, including an enhanced complaint-resolution process. Bluegreen also agreed to pay a fixed annual fee of $70,000 for each Bass Pro and Cabela’s store that Bluegreen is accessing, plus a fee per net vacation package sold.

Bluegreen will also donate a portion of its proceeds from vacation packages to Bass Pro’s Wonders of Wildlife Foundation, at a minimum annual donation of $700,000.

Bluegreen said in the release that the company has agreed to amend its marketing agreement, which will reinstate Bluegreen’s access to Bass Pro’s marketing channels — including allowing Bluegreen to market itself in Bass Pro’s stores — and extend the company into Cabela’s retail stores.

Johnny Morris, founder and CEO of Bass Pro, said in a statement that Bluegreen “shares our commitment to providing our customers and its owners and guests a memorable vacation in the great outdoors.”

“We look forward to this next chapter of our long running relationship,” he said.

Bass Pro’s attorney, Mike Stenglein of King & Spalding in Austin, Texas, could not be reached for comment. The company was represented locally by Spencer Fane.

Eugene E. Stearns, a Miami attorney for Stearns Weaver Miller Weissler Ahladeff & Sitterson, represented Bluegreen.

He said the two companies have had a successful relationship for nearly two decades, and Morris has “developed an extraordinary marketing presence where he does more than just retail outdoor goods, but he’s created in his retail stores a unique experience for his customers.”

He said Bluegreen has enjoyed the relationship and its success has been tied to that of Bass Pro.

“We were sorry that there were disagreements but the disagreements have been resolved and we’re happy about that,” he said.