Welcome to the start of another week, we begin today with some legal news which was announced last week by Canarian Legal Alliance. The first is a bit of a bombshell and will probably please many Silverpoint clients who have hoped for this kind of news for many years. The second piece of news is also of great importance and will be a blow to many companies within the timeshare industry.
On 16 September 2019, it was announced via an official court notice that it has been decided to open summary proceedings against Silverpoint and its administrators. This begins the process of an investigation into possible criminal offences perpetrated by Silverpoint and the administrators and the possibility of obstruction of justice.
It was agreed by the Judge and the Justice Department that there were very “serious indications of obstruction” and that a full investigation should, therefore, be launched.
This decision to launch an investigation following the filing of many complaints by lawyers of Canarian Legal Alliance against Silverpoint and its attitude to flagrantly disregard orders made by the courts to pay back to clients of CLA the money so ordered. Silverpoint has constantly failed to honour its obligation to pay the awarded amounts at the conclusion of the cases.
Part of the investigation also involves Silverpoint’s failure to produce information required by the court regarding the embargo of assets.
In direct response to the constant complaints and allegations made by Canarian Legal Alliance that Silverpoint and its administrators “conduct is prejudicial to Justice” the State prosecutor for Tenerife has decided to act. This investigation is solely against Silverpoint and its administrators.
This is obviously regarded as a very serious matter which could have grave consequences for the accused, with up to four years in jail. These complaints are now being used in all enforcement proceedings by CLA which may also have the effect of speeding up criminal proceedings and lead to convictions of those involved.
It is now obvious that Canarian Legal Alliance is totally committed to upholding the interests of all their clients, ensuring they receive the justice they deserve.
Inside Timeshare will be reporting on this as and when further news is released.
In a case filed at the Court of First Instance of Fuengirola, Club la Costa argued that the Spanish Court did not have jurisdiction and could not hear the case, this is due to the fact that the contract had a UK Limited company and that it was subject to the jurisdiction of UK courts and laws. Lawyers from CLA did not agree and challenged this argument. Unfortunately, the judge at the First Instance Court agreed and would not hear the case.
CLA lawyers then urged their clients to appeal this decision at the High Court of Malaga.
The case was then heard by the appeal court who agreed with the lawyers from CLA that the case should be heard in a Spanish court and that they did have jurisdiction. The State Attorney also submitted a report which clearly backed up the view of the CLA lawyers claim and the High Court’s decision.
Many timeshare companies have used this ploy to circumvent the Spanish Timeshare Laws, so this is a resounding success as it now leaves many more cases to be brought.
Club la Costa are also members of the RDO (Resorts Development Organisation) which is the trade body for the timeshare industry in Europe. A such, Club la Costa are bound to abide by the RDO “Code of Conduct” which states in paragraph 3.5 “To comply with all laws, which apply to Member’s, business in the jurisdiction in which the Member operates.”
So it appears that CLC is not only floating Spanish Law but also the terms of membership to the RDO.
CLA has also received more embargos one against Club la Costa through Paradise Trading SLU and another against Silverpoint.
This embargo against Silverpoint is just the latest in a series filed by Lawyers of CLA on behalf of their clients to ensure swift payment for their clients. This latest one is for over 30,000€ and follows a firm sentence by the High Court in Tenerife.
It is certainly becoming obvious that Canarian Legal Alliance and their lawyers are doing everything in their power to ensure that their clients receive the justice that they deserve. So to the legal team at CLA and their clients a very big congratulations.
When Inside Timeshare receives more news on these and other events it will be published here.
If you have a timeshare and would like to know where you stand legally with your contracts, please use our contact page and we will get back to you.