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Timeshare Litigation Case Study

Timeshare Litigation Case Study


Client Nationality: English

Defendant Resort: Silverpoint (Resort Properties)

Resolution Location: Madrid; Spain

Judicial Level: Supreme Court

Case Type: Civil

Timeshare Structure: Timeshare Week

Resolution Period: 4 Years (2013)

Amount Awarded: £80,000 + legal fees & legal interest.


Client Story:

After purchasing timeshare back in 1993 our clients made a series of exchanges in which they eventually arrived at Beverly Hills Heights in February 2004.  Despite our client reeling due to a sudden death in their family, a Silverpoint timeshare representative who had been meeting with them for over three days, finally pressured them into purchasing eight apartments. Our clients were promised a minimum of 15% profit, and had no reason to believe that this was not true. Upon return to Tenerife in July 2004, our clients were told that what they had purchased was virtually useless and were promised that by switching to a penthouse they would get all their money back within 6 months.  After two years it became apparent that this was not going to happen, Silverpoint had led our clients to believe that they would make money out of investment and instead left them with an empty savings account.

Action Taken by CLA:

Frustrated and left with no other options, our clients contacted Canarian Legal Alliance in 2013. After being effectively scammed for years our clients decided to put their faith in a law firm with the intent of recuperating all their monies. By late 2013 their case had been presented at court with a trial date set for 2014.  After the trial our clients unfortunately lost their case, however they kept their faith and appealed to the High Court in which yet again they lost. Confidently Canarian Legal Alliance recommend our clients appeal to the Supreme Court.

After a long battle our clients were informed of the long awaited good news, the highest-ranking court in Spain had declared their contract null and void and ordered the return of all monies paid to Silverpoint.


Resort Infraction & Sentence Summary

The Supreme Court has now on several occasions declared contracts which have been signed with a length of more than 50 years, (perpetuity) null and void. The maximum duration of such a contract is maximized in 50 years by the Spanish timeshare law 42/98. The floating weeks have been also declared null and void by the Supreme Court as it is missing an essential part of the contract- which is the object.

In this case the court also found our clients to be consumers as well as investors, something that Silverpoint had constantly denied. Silverpoint had been arguing this whole time that investors do not fall under the Timeshare Law of 42/98 and therefore does not apply to them. The highest-ranking court has now rejected this argument, stating that an investor is still a consumer.

These cases show that the courts are on the side of the consumer and will find for them when any resort infringes on the law set to protect them.



November 6, 2017

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