El blog de Maria

Your daily Spanish Law reporter. Have it with a cafe con leche.
www.costaluzlawyers.es

Legal tip 552. Case Law on Banks liability when NO Bank Guarantee
20 June 2011 @ 21:50

Very recent Case Law ( dated 3rd of May 2011) by Burgos Appeal Court

1.- Claimer requests both developer and Bank ( issuer of a general Bank Guarantee) to provide the individual Guarantee and subsidiarily to refund the handed amounts plus legal interests.

2.- On Banks liability Judge interprets that the constitution of the guarantee is so essential that if it is not met, the buyer directly acquires rights for devolution of the handed amounts. Banks are obligued to restitution of handed amounts due to negligency for not constituting the required individual certificates of Guarantees.

So, if you bought off plan and claimed for refund of deposits, obtaining a win but finding an unsolvent developer who cannot pay you back, go and find possible liabilities of the Bank who issued the general Bank Guarantee and did not assure you had your individual certificate for the protection of your amounts. Banks where you placed your amounts are also liable for the refund according to provision 1.2 of Law 57/68.

Great for Burgos!

Maria

Playa de Areacova, Cangas de Morrazo, Rias Baixas, Galicia, Spain by Inmobiliaria Lares at Flickr.com

Permalink

9 Comments

Anne said:
20 June 2011 @ 22:13

This sounds very promising Maria but will the courts apply it within reasonable time-frames or will this just drag out indefinitely as with other case wins? Is there any way that this procedure can be fast tracked?

chris la cala said:
21 June 2011 @ 15:00

I won my case against the developer 2 years ago,also an enbargo agaist a finised property as yet i have not recieved a penny (95000 euros plus interest).I DID NOT GET A BANK GUARATEE and the developer is now in addministration,whats my next move bearing in mind i am 66 and this has been going on for 8 years. CHRIS

Maria said:
21 June 2011 @ 15:04

You may have the possibility of enforcing that Court decission against a guarantoor Bank and if it does not exist, to use the action against the Bank which received your deposits.
Are you still willing to buy in Spain?

chris la cala said:
21 June 2011 @ 15:43

I won my case against the developer 2 years ago,also an enbargo agaist a finised property as yet i have not recieved a penny (95000 euros plus interest).I DID NOT GET A BANK GUARATEE and the developer is now in addministration,whats my next move bearing in mind i am 66 and this has been going on for 8 years. CHRIS

Chris la cla said:
21 June 2011 @ 16:31

No The property was for my daughter,time has passed and she is back in england.I have my own property in spain and thats and thats 1 too many,thank you for your reply.Chris

Keith said:
22 June 2011 @ 00:23

That is excellent news María.

I have read the full judgement from the Appeal Court and I think it is a big step in the right direction.

This buyer did not have an individual Bank Guarantee, yet the Appeal Court Judge still overturned the First Instance Court decision and found Caja Burgos, the financial entity who accepted the off-plan deposit, guilty of negligence for their failure to issue the invididual Bank Guarantee. Brilliant!!

Slowly but surely the Judges are beginning to interpret LEY 57/68 correctly.

Just as importantly they are beginning to realise that many Banks were negligent and failed to comply with their obligations according to LEY 57/68.

Kind regards

Keith

Sheila said:
30 June 2011 @ 22:04

As positive as that all sounds, we still havn't received any money back from Cam Bank and we do have a guarantee. What can you do if even the courts don't behave in accordance with the law as it's writen?

I think the situation is a farce and as much as I would love to follow my dream and move to Spain I won't for fear of what the future might hold for immigrants.

Maria said:
01 July 2011 @ 11:24

Cam has very recently acquiesced to a Bank Guarantee´s enforcement of one of our clients in Courts. It is a good sign.

Mega said:
08 July 2011 @ 13:31

Hi This message is for anyone waiting for news about Aifos addmistration,a friend of mine has just recieved a letter from his lawyer saying that there are 800 unresolved cases that have to go to court before the addministrators can make he crediters an offer.The problem is that some of these cases are not in court untill 2013. This is spainish justise.