Brexit paves the way for timeshare mediation in UK–Spain disputes

Brexit should be viewed as an opportunity rather than a barrier for people in the UK dealing with disputes over unwanted timeshares, according to a Spanish legal expert. The comments come from Adriana Stoyanova, a lawyer with Malaga-based M1 Legal, specialists in timeshare contract law linked with the UK-based European Consumer Claims LLC.

“Brexit is most likely to affect disputes where one party is based in the UK and the other in an EU member state,” said Stoyanova. “Although it is still not clear what would happen if and when Brexit takes place, clients negotiating contracts with UK-based companies would be well advised to agree on EU-based, rather than British, jurisdiction.

“This enables them to benefit from EU laws on the recognition and enforcement of judgments in civil and commercial matters, as well as judicial assistance with service of documents and taking of evidence.”

For example, in 2019 M1 Legal secured 22 jurisdiction victories against timeshare company Club La Costa, after the company appealed Spanish court decisions in an attempt to have hearings moved to the UK. The judge ruled the cases should be heard in Spain, which is of greater benefit to UK clients. All 22 cases will be resolved by the Spanish courts.

Stoyanova said the harmonised EU regulations that currently govern these issues are likely to no longer apply to UK jurisdictions after Brexit, which could lead to added cost and delay, as well as parallel proceedings and contradictory judgments.

“The practical steps that all parties involved in cross-border contracts should consider include thinking carefully about potential dispute and enforcement issues, and adopting a ‘conditional’ dispute resolution clause that allows a degree of flexibility as the UK’s position becomes clearer.

“That means considering mediation and arbitration as alternatives,” added Stoyanova.

“It seems likely that arbitration will be less affected by Brexit, at least from a legal perspective. The legal framework supporting arbitration will remain unchanged, and the separate enforcement mechanisms available for arbitration may offer greater certainty and advantage in comparison with litigation.”

She added that Brexit also gives mediation a chance to reinvent itself for several reasons: it is faster than court proceedings; it is cost-effective, and typically much cheaper than litigation; it can help limit exposure to legal costs in the UK where a valid offer to mediate is made; it is confidential, helping parties protect their public reputation; it can balance power between the parties; it can preserve business relationships; and it can enable negotiation of payment plans that help maintain healthy cash flow.

European Consumer Claims LLC are the UK and Europe’s leading experts in helping to release people from unwanted timeshare contracts and making claims for people to get their money back, assigning Spanish cases to their legal experts M1 Legal in Malaga.

Malaga Legal Professional Networking Event

In the picture: M1Legal lawyers Patricia Criado and Jaime González

Recently, M1 Legal attended a two-day legal professional networking event, helping to build local and international brand awareness. They were positioned alongside leading Spanish law offices, as well as law and higher education professionals from the UK. Over the two days, they answered questions from consumers and professionals and helped to educate attendees about timeshare claims.

Timeshare Tips

1. If your resort offers you an upgrade, be very careful. Often, the existing contract is cancelled in favour of a new contract showing the upgrade. The risk is that the new contract may be written in line with current law, which can make it harder to bring a claim in relation to the earlier unlawful contract.
2. If you are surrendering your timeshare back to your resort, take care before signing the surrender document. It will normally include a disclaimer clause that may prevent you from taking legal action against your resort or its associated companies.

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The head office is located in Mijas Costa, southern Spain, and we would love everyone to visit the M1 hub. However, we know this is not always easy to arrange, so we also have satellite offices across the UK for convenience.

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If you are unhappy with your timeshare purchase, contact our advice line on 0203 807 3388 today!