The Spanish High Court in Malaga has overturned the decision of the lower court and ruled that the Spanish courts are the correct jurisdiction to hear the cases of Club La Costa clients who purchased timeshare products that include the use of Spanish resorts.
The appeal had been lodged by Miguel Rodriguez Ceballos, lead lawyer at The Nordic Consulting. Miguel had been surprised that the lower court refused to rule on the case in the first place and believes that the ruling is great news for claimants against Club La Costa. The Spanish courts have been awarding refunds and large amounts of compensation to claimants who purchase illegal timeshare contracts from 1999 onwards.
You can see the sentence of the appeal court below, the key paragraph of which translates to:
THE COURT HEREBY RULES
WE MUST AND WE DO UPHOLD the appeal lodged against the order dated 20 October 2021, issued in bankruptcy proceeding 128/21 of the Concurso de Acreedores 908/20 of Commercial Court 2 of Malaga and consequently, we hereby REVERSE and REVOKE the said decision, declaring the jurisdiction and competence of the Commercial Court to hear the said matter. All of the foregoing without express imposition of costs in this instance.
Claims in Spain had been presented to the Commercial Court in Malaga, since the relevant Spanish entities are presently in liquidation. You can read about these liquidations here. The judge in the commercial court initially refused to rule on the cases, since the main bankruptcy proceeding was in the UK.
Club La Costa – options open to owners
If you are worried about a CLC contract that you have signed – perhaps because it is based around an illegal points system, or because it has a long and illegal duration (we have seen as far out as 2074!) – make sure you contact The Nordic Consulting. One of our lawyers can review your paperwork, without charge, and give you the professional advice and options open to you.