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Diamond Resorts Europe Ltd

End the Week Roundup and the Latest on the CLC Liquidations

Welcome to the end of the first full week of 2021, although the news coming from around the world does not look good with increased restrictions on travel and more lockdowns, it doesn’t stop in the world of the timeshare scammers. In fact, judging by the number of emails received along with the comments posted on the various Fb groups, the number of calls seems to be increasing. Many are those which we have already highlighted, some are new, but, they do all have one thing in common, the scare tactics and misinformation. In today’s article Inside Timeshare once again warns Club la Costa members to be on their guard and to seek advice before engaging with any company that calls. First, we have a quick look at what we covered this week.

We began the week with yet another appeal by Anfi being rejected and dismissed by the High Court. This was the last sentence issued by the court just before Christmas, so it was very welcome news for that particular client.

On Tuesday we had a quick look at our old friends at Mindtimeshare who began publishing again a few weeks ago. Although much of what they posted was out of date, it does serve as a reminder of how careful timeshare owners must be.

We also published the latest information on the Financial Conduct Authority and their validation of the loan agreements brokered by Azure through Barclay Partner Finance. In these articles, we published a link to the Fb Group, Azure Malta Action and Support Group who are gathering other victims for a concerted effort to have the validation order overturned.

In another case surrounding the subject of jurisdiction, this time it was the turn of Diamond Resorts (Europe) Ltd. Once again the Court of First Instance Number 1 of Fuengirola ruled in accordance with all rulings from various High Courts that Spanish Law and Courts do have jurisdiction and the timeshare companies operating from Spain must comply with the law.

Yesterday, in another ruling made by the same Court of First Instance in Fuengirola, ruled in the case of Continental Resort Services SLU, which is a Spanish registered company Club la Costa sales branch, also claimed that their contracts were subject to the Jurisdiction of UK Law and UK Courts.

The judge ruled in accordance with all previous rulings and declared the contract null and void with the client being awarded over 41,000€ plus legal interest and costs.

This case was brought before the courts on behalf of a German client by Canarian Legal Alliance.

Staying with Club la Costa, as we have published previously, there are several Club la Costa sales companies which have now filed for liquidation. We have already been informed that this is being used by some unscrupulous callers to scare CLC members into signing up for relinquishments and claims.

They are claiming that members are going to lose everything due to the liquidations, what we can tell you is these liquidations will have no effect on your membership. It does, however, affect any member looking at making a claim against the sales company which sold them the product.

The companies which are now going into administration are:

Paradise Trading SL;

Club la Costa (UK) PLC  sucursal en España;

Continental Resort Services SL;

California Beach Hotel, S.A.U.

PDF copies of the Official Bulletin Announcements.

If you already have a case in the courts, having a case prepared our advice is to contact your law firm or lawyer for clear and precise advice to check if this affects you and your case.

If you are contemplating legal action against CLC then ensure that you are being told the correct information. If you would like any further information on this or any other timeshare matter, please use our contact page and Inside Timeshare will get back to you.

Have a good weekend and join us again next week for more on the murky world of timeshare.

Important Court News: Diamond Lose Jurisdiction Case

Although today in Spain is the Feast of the Three Kings or Día de Los Reyes Magos, or most commonly known as The Epiphany, news arrived late yesterday of yet another case involving “Jurisdiction” of contracts. This is a very important decision from the courts and is following all other rulings made by various courts around Spain on this matter, that Spanish Courts do have “Jurisdiction” on any contract purchased, signed and paid for in Spain, regardless of the “clauses” in the contract.

Over the past couple of years, we have seen many cases being delayed due to this particular clause, with some of the very first cases being against Club la Costa with others such as Diamond following suit.

Once again it is an attempt to bypass Spanish Law by claiming the contracts fall under the jurisdiction of UK law and UK courts, which in the beginning they did succeed in doing. But through the tenacity of various lawyers who argued that consumers were entitled to the full protection of Spanish Law and that timeshare operators cannot decide which jurisdiction their contracts come under. By doing so they are taking away all the rights a consumer has.

The latest case involves Diamond Resorts (Europe) Ltd, a UK registered company which was operating sales of timeshare in Spain. Their contract stipulated that it was subject to “the jurisdiction of UK law and UK Courts” which is blatantly taking away consumers rights.

Is their Code of Conduct worth the paper it is written on?

It should also be noted that under the RDO Code of Conduct, Part I, Chapter 3, Paragraph 3.5 actually states:

“To comply with all laws, which apply to Member’s, business in the jurisdiction in which the Member operates.”

Obviously, the use of the “jurisdiction” clause is a breach of these rules as to comply with “all laws” of the country in which the member operates must be abided by. If this isn’t a breach of RDO rules then we don’t know what is!

Palacio de Justicia Fuengirola

This particular case was heard at the Court of First Instance Number 1 of Fuengirola and the case was once again brought on behalf of an English client by Canarian Legal Alliance

As we have seen in all previous cases of this nature, the Judge immediately dismissed Diamond’s appeal on Jurisdiction, referring once again to the rulings of the High Court of Malaga. This court along with High Courts in other provinces have all consistently ruled in favour of the consumer that they (Spanish Courts) do and will have full jurisdiction on any contract sold in Spain.

In this case, the Judge ordered that Diamond repay the client 17,572€ plus legal interest and the return of all legal costs. The client will also receive a further 8,513€ in respect of original purchases and a further 9,059€ which is double the deposit taken illegally on the day.

The contract has also been declared null and void leaving the client timeshare and maintenance-free.

The case was prepared and presented by the CLA Lead Lawyer Eva Gutierrez with the client being assisted by Claims Consultant Jake Kaiser.

Once again we see the court’s ruling in favour of consumers and declaring contracts illegal, as we have said before, it is a problem of their own making, after all, the laws were enacted in January 1999 yet they continued to sell as they had done before believing they knew better. But now they are finding that was a very expensive assumption to make.

If you would like to know more and see if you have an illegal contract and what your legal rights are, please use our contact page and Inside Timeshare will get back to you.

End the Week: Courts Roundup

It’s the end of another week and in Spain, the lockdown is beginning to ease with more people returning to work and most importantly the courts. At the moment they are not holding any trials although the judges are working where no witnesses are required to be present. Today we bring you some of the sentences which the judges have now issued for trials that took place before the closedown. We start with a very important decision from the courts in Fuengirola.

Over the years many of the timeshare companies such as Club la Costa, Diamond and MacDonald Resorts have tried to get around Spanish timeshare legislation and in the past, they have succeeded.

These companies have used on their contracts UK Limited companies with the clause arguing they are subject to UK law and the Jurisdiction of UK courts. Unfortunately, many judges for whatever reason have agreed and have refused to accept cases. But over the past few years or so, Canarian Legal Alliance has fought these moves and as we reported in the article below the Supreme Court rejected an appeal by CLC against a Malaga High Court decision that they did come under Spanish law and jurisdiction.

https://insidetimeshare.com/http-insidetimeshare-com-p5128/

Now it is the turn for Diamond Resorts (Europe) Ltd, The Court of First Instance Number 1 in Fuengirola has ruled that despite the claims of Diamond Resorts, Spanish law and courts do have jurisdiction.

In the ruling from the court, the documents (see PDF below), show very clearly the precedents set by the Club la Costa cases, with the various rulings being cited. It is now clear to all, that if the timeshare is purchased in Spain then the consumer is protected by Spanish Law. This opens the gates for many timeshare owners who previously did not have a case in Spain due to the clauses in the contract of jurisdiction. Do remember that Spain has the toughest timeshare laws in Europe, the UK, however, is lacking very far behind.

The case was brought by Miguel Ángel Melián Santana (Abogado) and Francisco Cornelia Montesdeoca Quesada (Procurador) of Canarian Legal Alliance.


Miguel Ángel Melián Santana

On Monday 1 June, the High Court Number 3 in Tenerife (this is the appeal court), declared a UK client’s Silverpoint contract null & void with the return of over 60,000€ plus legal fees and legal interest.

The claim is now being registered with the Mercantile Court making the client a “creditor” as well as being handed over to the Enforcement Team of CLA to secure the funds through property embargoes of the Limora Group. Along with this further embargoes are being sought against assets held by the ex-managing director of Silverpoint. From these proceedings, it is clear that CLA is doing whatever it takes to ensure their clients receive their lawful payments.

The lawyers in this case were Miguel Ángel Melián Santana and Óscar Salvador Santana González.


Óscar Salvador Santana González

The following day was not a good one for Anfi Sales SL and Anfi Resorts SL, the case was heard at the Court of First Instance of San Bartolomé de Tirajana, Gran Canaria. Ths court ruled that 4 contracts be declared null and void with the client to be returned over 15,000€ plus legal fees and legal interest.

The lawyer conducting the case was Adrián Diaz-Saavedra Morales of CLA.


Adrián Diaz-Saavedra Morales

On Wednesday the High Court Number 5 the appeal court of Las Palmas GC, confirmed the original ruling made at the Court of First Instance against Anfi, yet again.

The contract was declared null and void with the court awarding 152,345.38€ plus by way of a fine a further 26,743.68 for the illegal taking of payments during the statutory cooling-off period. This happy German client is now timeshare free and 179,088.68€ better off.

This client was assisted in the claim by the senior German Consultant Jasmin Erhard and the lawyer Eva Guttiérrez.


Eva Guttiérrez

This morning another German client of CLA has just received their sentence from the courts in Fuengirola against Club la Costa. The court declared the contract null and void and awarded the client 10,100.85€ plus 15,782.03€ by way of a fine for the illegal taking of deposits within the cooling-off period giving a total of 25,882.88€

The client was assisted once again by Jasmin Erhard with Óscar Salvador Santana González who was in charge of the case.


Jasmin Erhard

So it is congratulations to the happy clients and a very big well done to the team at Canarian Legal Alliance.

That is all for this week, hopefully Inside Timeshare will be running back to normal next week, in the meantime have a great weekend and stay safe.

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