Brexit looms and Thomas Cook collapses: what it means for Spanish timeshare claims

With the Brexit deadline approaching, we spoke to Adriana Stoyanova, a senior lawyer at Spanish law firm M1 Legal, to understand what Brexit could mean for cross-border timeshare litigation and bringing a claim through the Spanish courts.

Power of Attorney

To start a claim against a timeshare resort in Spain, owners usually need to put a notarised Power of Attorney in place so a cross-border law firm can act on their behalf.

Adriana Stoyanova, head lawyer at M1 Legal, explained:

“The UK is a part of the Hague Convention Abolishing the Requirement of Legalisation for Foreign Public Documents (1961) since 1965. In the event that according to the purchase contract (mainly in the cases of a Spanish vendor company) we can initiate a claim in Spain, a Power of attorney will be required as usual, notarised either in the UK with apostille or in Spain, Brexit will not affect this aspect.”

Jurisdiction

In many cases—particularly with larger timeshare groups such as Club La Costa and Diamond Resorts—once a claim is filed in Spain, resorts may challenge Spanish court jurisdiction. This often involves appealing on jurisdictional grounds and arguing that the case should not be heard in Spain, as part of an attempt to have the matter dismissed.

Stoyanova added: “This means that after Brexit, in the event that there is a jurisdictional issue the court will first check whether the jurisdictional clause is valid or not. In the event that we prove that the jurisdictional clause is not valid, the court has to apply Art. 22 fifteenth of the Spanish Organic Law of Judicial Power and the claim could be processed in Spain.”

Brexit: deal or no deal?

Many consumers are asking what Brexit might mean for their ability to pursue a timeshare dispute in Spain.

Stoyanova said:

“No matter the outcome of Brexit, it will NOT affect your rights to claim if you are a victim of a mis-sold timeshare.”

More recently, it was announced that Britain’s oldest travel company, Thomas Cook, went bust. While this has understandably attracted significant media attention, a lesser-known detail is that Thomas Cook was discreetly involved in timeshare from the mid-90s. Reports are still emerging about what led to the collapse, and at this stage we cannot comment on whether its timeshare division contributed to its downfall.

For further advice, you can call our friendly advice team on 0203 807 3388, or you can find out how much your potential claim may be worth by using our “all-new” claims calculator.

Click Here to Value Your Claim

For more information, or if you have any questions about your timeshare, please call our advice line on 0203 807 3388 or email pr@timeshareadvicecentre.co.uk.