Following an initial ruling that the claim did not fall within Spanish jurisdiction, M1 Legal lodged an appeal and the earlier decision was overturned. In the first instance, the defence maintained that the dispute should not be heard in Spain, arguing that the contract is governed by English law and should therefore be dealt with outside the Spanish courts.
On appeal, the judge concluded that Diamond Resorts Europe Limited Sucursal en España is a Spanish entity and that the proceedings should be heard in Spain. This finding brings the Spanish court’s jurisdiction into focus and means the case can move forward through the Spanish legal system rather than being diverted elsewhere on the basis of the governing law argument.
As a result of the appeal outcome, the matter will now be sent back and re-submitted to the court of first instance. That return to the lower court allows the claim to be reconsidered with the jurisdiction point clarified, so the case can continue on its merits in the appropriate forum.