Response to Club La Costa mailshot (30 July 2021): impact on Spanish court claims

Following an email sent by Club La Costa on 30 July and published on the Resort Development Organisation (RDO) website, we would like to clarify that the message presents a distorted version of the position. In our view, it is intended to scaremonger and create confusion for consumers whose cases are being pursued through the Spanish courts.

As you may be aware, Club La Costa (UK) PLC entered administration in the UK in November 2020. In December 2020, it filed for liquidation of its Spanish branch, “Club la Costa (UK) PLC Sucursal España”, which forms part of the PLC company.

In December 2020, liquidation proceedings were also opened for a number of other Spanish group companies, including Paradise Trading and Continental Resorts. The management of those companies was subsequently placed in the hands of an administrator in Spain appointed by the Spanish Mercantile Court.

From the point the companies entered administration, all new cases against Club La Costa (UK) PLC and CLC Sucursal España became the responsibility of the UK administration body. However, all pre-existing cases against these companies were properly commenced in the Spanish Civil Courts. The Mercantile Court ruling simply confirms this position: pending and new matters should not be filed in the Spanish Mercantile Court, but instead submitted in the UK.

We can confirm that every one of our clients has been correctly reported to the UK administration procedure, and we continue to report new clients’ cases in the same way. Against that background, we struggle to see why the CLC Group has circulated misinformation that appears designed to create alarm and doubt.

We continue to monitor each step taken by the CLC Group, particularly where it appears aimed at avoiding liability in light of the hundreds of court rulings made against them.

PLEASE NOTE: THIS LATEST MERCANTILE COURT RULING DOES NOT AFFECT IN ANY WAY ANY PREVIOUS JUDGMENTS MADE BY THE SPANISH COURTS, OR ANY ONGOING PROCEEDINGS IN THE SPANISH CIVIL COURT AGAINST Club La Costa COMPANIES.

In addition, we would like to update you that over recent months we have made substantial legal efforts to ensure our claimants are recognised as majority creditors in the UK administration proceedings. This has resulted in the appointment of a new creditor-appointed administrator (FRP) to replace the court-appointed administrator (BDO). We recommend you follow the link to review the factual position and our ongoing work to ensure our clients are properly represented within the administration procedure in Spain and the United Kingdom.

If you have any questions about your claim, please don’t hesitate to contact us.