MVCI refunds awarded in Spanish courts: Malaga contract nullity payouts up to £33,992

If you are a Marriott Vacation Club International (MVCI) owner, you may have legal rights in Spain to seek a full refund where your timeshare membership contract does not comply with Spanish law.

In January 2015, the Spanish Supreme Court ruled that contracts signed after 5 January 1999 cannot be in perpetuity or for more than 50 years. Contracts must also meet specific legal requirements and include clear details of the apartment/unit and week(s) owned, together with the dates of use. This has meant many “points” and “floating weeks” arrangements may be found unlawful under Spanish timeshare law.

More recently, Malaga-based M1 Legal have established landmark precedents by securing hundreds of Spanish court compensation awards, including two recent awards for clients against MVCI.

To date, M1 Legal have secured 523 victories against Spanish-based resorts, valued at £9.1 million, and are handling hundreds more cases through the Spanish courts, including many involving Marriott Vacation Club International.

This is a strong indication that major timeshare companies now have to accept the likelihood of compensating members who were issued contracts that do not meet Spanish legal requirements. Some less credible companies have attempted to avoid this responsibility; however, we are pleased that MVCI have accepted that many of their Spanish contracts failed to comply with the law and have allocated funds for compensation. In their 2020 MVCI Annual Report, they state…

Loss Contingencies

"We are subject to various legal proceedings and claims in the normal course of business, the outcomes of which are subject to significant uncertainty. We record an accrual for loss contingencies when we determine that it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. In making such determinations we evaluate, among other things, the degree of probability of an unfavorable outcome and, when it is probable that a liability has been incurred, our ability to make a reasonable estimate of the loss. We review these accruals each reporting period and make revisions based on changes in facts and circumstances."

The same report also highlights that, since 2018, they have incurred $58 million in litigation liabilities. In 2019, approximately two thirds of their litigation liabilities related to projects in Europe.

We hope you have found this update helpful, and invite you to find out more about your legal rights and the potential to pursue a refund in Spain.