I don't know anything about the specifics of the case, but no succession to titles of nobility is automatic in Spain.
Succession is still regulated by the RD of 1912 issued by King Alfonso XIII, but subject to later amendments and, especially, the 2006 law on equality between men and women in the succession.
When a title is vacant, there is a window of one year for the person who considers him/herself to be the immediate successor to petition the King to succeed to the title (the petition is processed by the Ministry of Justice). If no petition is received within one year, there is another window of one year for the person who considers him/herself the next in line (after the immediate successor) to present his/her petition. If no such petition is received again, any other person who believes he/she has a right to the title can petition to succeed within 3 years. After 5 years, the title lapses, but can be "rehabilitated", as they say, within the next 40 years, I think, provided that the claimant proves a degree of kinship with the last title holder no further than the sixth degree and, a very important recent amendment, shows evidence of extraordinary merit that has not been rewarded with an honor from the Crown before.
Separately, a person who holds multiple titles can distribute his/her titles among his/her direct descendants, again only by petition to the King processed by the Ministry of Justice, and with the constraint that the principal title (I don't know exactly how that is defined !) can be distributed only to the immediate successor. Following the Law 33/2006, the immediate successor is always the firstborn child, regardless of sex, or, in the absence of the firstborn child, his/her respective firstborn child, also regardless of sex. That is true even if the original letters patent that created the title specified male preference primogeniture or other form of succession. My understanding is that distribution has to be done while the holder of the titles is still alive, but please correct me if I am wrong.
Succession is formalized only when a Real Carta de Sucesión is issued in the King's name by order of the Minister of Justice published in the official State Gazette (B.O.E.) and such order can only be issued after the beneficiary pays the corresponding tax as set by law (which in practice is a kind of "inheritance tax" if you will).
In any succession or rehabilitation processes where there is more than one claimant to the title, the Ministry of Justice is required by the RD to consult the Diputación Permanente de la Grandeza de España y Títulos del Reino for an expert opinion.
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