Cuatrecasas advises Diamond Resorts on forum clause ruling

Cuatrecasas has advised Diamond Resorts in obtaining a recent ruling by the Full Bench of the First Chamber of the Spanish Supreme Court, which confirms the positions defended by the Firm’s Appeals and Special Remedies Group before the Court of Justice of the European Union, first, and subsequently before the Supreme Court, regarding the interpretation of the Brussels I bis Regulation.

The ruling confirms the validity of forum selection clauses that submit the resolution of consumer disputes to the courts of their domicile. The decision also provides decisive support to Diamond Resorts’ strategy of directing litigation arising from these contracts to the English courts when the clause provides for non-exclusive jurisdiction and when the case has no particularly close connection with Spain, thereby strengthening legal certainty in interpretation.

Contrary positions, previously upheld by the Provincial Courts, especially in Málaga and Tenerife, had systematically led to the invalidation of forum selection clauses in timeshare contracts and the jurisdiction of Spanish courts, states the law firm.

The Cuatrecasas team advising on this matter included Juan Antonio Xiol and Álvaro Luna, from the Appeals and Special Remedies Group, and Markus Gómez from the Construction and Real Estate Litigation Group.

Pictured, from left to right, Juan Antonio Xiol, Álvaro Luna and Markus Gómez.