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No Lagoon on Honeymoon--They Sue

Times Staff Writer

Michael and Kathryn Schroeder say their honeymoon in the Bahamas three years ago wasn’t what Eastern Airlines had promised it would be--a stay at a luxury hotel near a tropical lagoon.

In a lawsuit filed in Orange County Superior Court on Thursday, the Irvine couple claim that the hotel was noisy and in decay, the room had a lumpy bed, the air conditioner threw dust into the room--and there was no lagoon.

Michael Schroeder, a Newport Beach attorney, and his wife say they were upset by what they considered the airline’s advertising deception and refused to pay the $1,086 bill for the trip, which they had charged on their Carte Blanche card.

Last year, it came back to haunt them. They claim in their lawsuit they had trouble buying a home because they had been given a bad credit rating.

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The lawsuit was filed against Eastern Airlines, Carte Blanche and D.C. Credit, which is a collection agency in Van Nuys employed by Carte Blanche.

The Schroeders claim the collection agency contacted the lender on the house just before escrow closed and persuaded the lender not to finance the purchase until the debt to Carte Blanche was paid.

Eastern had credited the couple with $152 after they returned from their honeymoon and complained about vacation conditions. But the Schroeders say they were still locked in a dispute with Carte Blanche over the rest of the charges.

The Schroeders are seeking $20,000 in general damages, the amount they say it cost them to buy a house using another financial arrangement, plus $500,000 in punitive damages for mental stress.

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The Schroeders could not be reached for comment.


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