Marriott Vacation Club International Refunds Awarded In The Spanish Courts

Marriott Vacation Club International Refunds Awarded In The Spanish Courts

The Spanish Supreme Court ruled in January 2015 that all contracts signed after 5th of January 1999 cannot be in perpetuity or for a period of more than 50 years. Contracts must also comply with specific legal criteria and must include the details of the apartment/unit/weeks owned together with dates of use (thus rendering many “points” or “floating weeks” contracts illegal).

Recently, M1 Legal set landmark legal precedents by obtaining hundreds of compensation awards including two recent awards for clients against MVCI.

Case 1 

Hearing Date: 28th January 2021
Contractual Name: MVCI Holidays S.L. & MVCI Management S.L.
Reason for Nullity: The contract end date was over 50 years and did not offer a cooling-off period
Amount Awarded: £14,980

Case 2 

Hearing Date: 9th March 2021
Contractual Name: MVCI Holidays S.L. & MVCI Management S.L.
Reason for Nullity: Malaga court of appeal confirmed the nullity (despite arguments from MVCI) due to length of contract (ending in 2077)
Amount Awarded: £33,992

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

This is a clear indication that major timeshare companies now have to accept the inevitability of compensating members to whom they have issued illegal contracts. Some less credible companies have looked 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 responsibly 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."

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

If you would like any further information, please don't hesitate to contact us on (UK) 0203 670 4610 or (Spain) 951 562 203