The Spanish courts are not competent to hear timeshare claims against Club La Costa (UK) Plc Sucursal en España (henceforth, Club la Costa). These are the findings issued by the Mercantile Court no. 2 in Malaga in two orders dated 23-07-2021 and 26-07-2021 (Claim within the insolvency proceeding no. 398/2021 and no. 388/2021), where the administration proceedings of Club La Costa are being heard.

In accordance with this decisions, the legal actions lodged against Club La Costa in Spain cannot be admitted in view that the claims are filed by non-residents in Spain and they comprise personal rights that do not involve property rights, reason why they have legal backing in the Brussels Convention (EU Regulation 1215/2012 of The European Parliament and of The Council).

In addition, the two different mercantile Judges finds that the insolvency in Spain is merely a secondary proceeding that depends on the main proceeding heard in the United Kingdom. This means that, according to EU Regulation 848/2015, it must be the courts hearing the primary insolvency who deal with such claims, in the United Kingdom.

The decision of the Mercantile Court also alludes to the contracts containing an express submission to the United Kingdom which again inhibits a Spanish court from hearing the case.  

Lastly, we must highlight the severe reproach lodged by the judge to the claimanst when stating that the plaintiff addresses action against a company that is not a party to the contract with the only aim of invoking Spanish jurisdiction is “simply an attempt to choose jurisdiction à la carte” which is not permitted. 

In conclusion, according to this orders, Spanish courts are not competent to hear the timeshare claims seeking nullity of contract against Club La Costa and, therefore the claim is dismissed. This establishes a new criterion that will no doubt affect the rest of the ongoing claims as well as those that may be filed in future. According to this new court position, all new claims will be automatically rejected.