Timeshare Litigation Case Study
Client Nationality: British
Defendant Resort: Silverpoint / Resort Properties
Resolution Location: Tenerife, Canary Islands, Spain
Judicial Level: First Instance
Case Type: Civil
Timeshare Structure: Timeshare Week
Resolution Period: 3 Years (2014)
Amount Awarded: 15,886€
Client Story:
Booked through Travel Solutions our clients were offered accommodation in Beverly Hills Club, Tenerife back in 2004. Once at the resort they were introduced to Michael Allcock, who they informed of their lack of interest in purchasing Timeshare. Mr Allcock then explained Silverpoint`s investment plan, which consisted of owning various properties. Our clients sat in a room for over two hours where they were explained the benefits of buying into this investment plan. Unconvincingly our clients decided to go ahead and paid £4,240 deposit there and then, the balance of £16,957 paid once they had returned home.
Upon return to the resort in 2005 they were met with some shocking news. Our clients had been promised that these apartments would have been sold and they would make a certain amount of profit. Much to their surprise and disgust these apartments hadn’t even been put up for sale. When our clients went to speak to Mr Allcock, they were told that he no longer worked there and that to sell their apartments they would have to pay even more monies. Not only had our clients not been provided with the service they had been promised, but they were being forced to transfer further funds.
Action Taken by CLA:
Extremely unhappy and out desperate for a solution, our clients contacted Canarian Legal Alliance in the hope they could help recover the monies they felt they had been cheated out of. After a series of correspondence and due diligence, our clients in late 2014 decided to initiate a claim against Silverpoint / Resort Properties.
As early as spring 2015 our clients case was presented at court and subsequently accepted. A pre-trial date was then given to our clients, in which Silverpoint / Resort Properties still denied any wrongdoing, leading the judge to set a trial date. Much to the delight of both Canarian Legal Alliance and our clients the judge declared their Silverpoint contract null and void and ordered Silverpoint / Resort Properties return over 15,000€
Resort Infraction & Sentence Summary
Just as in previous cases the judge of the First Instance Court N4, used the various Supreme Court sentences as basis in his ruling. The judge cited the lack of specificity and information in the clients contract as the main concern for nullity. The Spanish timeshare law of (42/98) is clear on matters such as these, stating a contract must include a period of the year, apartment number and location. This is yet another example of the impact the recent Supreme Court rulings are having on timeshare resorts and the product they are selling.