Fixed period or flexible points -Advice-

You may have been unaware that an active group on Facebook has sought the advice of an eminent Scottish Queen’s Counsel on the likelihood of a successful challenge to MacDonald’s changes to the constitution. A brief synopsis of what has been recommended is contained below:-

He states:

1. that there is a reasonable argument that MRL breached our original sales contracts by voting for the resolution to change the constitution.
2. that there was an implied contractual duty on MRL not to interfere in the existing state of affairs under the Constitution in such a way as to amend the benefits purchased under the sales contract in the form of the Holiday Certificates.
3. that there is a reasonable argument that the changes went beyond the overall concept of occupation rights as set out in the original contracts and holiday certificates. The nature and extent of the difference between the two types of right (fixed period or flexible points) would need to be the subject of evidence before the court in any litigation.
4. that it can be argued that the change to the constitution was a fundamental one, which would require the dissolution of the present Club and the establishment of a new club in its place.
5. that it is arguable that the contract contains terms which, contrary to the requirement of good faith, caused a significant imbalance in the parties’ rights and obligations arising under the contract, to the detriment of the Purchasers giving rise to a claim under the Unfair Terms in Consumer Contract Regulations 1999.
6. Timeshare contracts are complex instruments, involving multiple parties and a range of legal mechanisms: contract, trust, unincorporated associations and property law. The advocate concluded that on the information before him there are reasonable arguments to support a claim against MRL for breach of contract, and against the Club insofar as its Constitution may have been amended contrary to a fundamental object. However, much will depend on the evidence that can be gathered. Given the nature of the possible claim, and the likely expense of any legal action, the advocate would suggest that a group litigation would be safer than any individual proceedings.

There is, therefore, a clear recommendation that the most likely route to success is through a group action and the only known group action currently being formed is the one supported by the Timeshare Consumer Association through Athena Solicitors LLP of Manchester.

Full details can be obtained by contacting legal@timeshareconsumerassociation.org.uk and you will be sent you a comprehensive pack telling you how to register and the staged payments that are likely to be needed from each litigant.

See concerned Owners

For more information regarding this article or assistance in any other timeshare related issues please contact the TCA on 01908 881058 or email: info@TimeshareConsumerAssociation.org.uk