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El blog de Maria

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

Legal tip 1414. Who Said the Lawyer isn’t Liable?
03 December 2016 @ 18:09

Case Law in Spain has already declared liabilities of conveyance lawyers who assisted clients in off plan purchases when clients lack Bank Guarantees

Depending on possibilities of proving (1) effective damages arising from this lack and (2) direct cause-effect relationship between the damage and the negligence, indemnization amount varies

  • If a buyer lacking an individual Bank Guarantee or Insurance Title has been able to obtain the refund using the General Bank Guarantee action but this has caused additional costs, these additional costs plus fee once paid to their legal advisors can be claimed against the Lawyers´ indemnity insurance
  • If a buyer lacking individual Bank Guarantee or Insurance Title has been able to obtain the refund using action against bank where payments were made but again, this has involved additional costs, an action against Lawyers’ indemnity insurance can be played for the refund of all the additional costs and fees paid in it’s time to the conveyancers
  • If a buyer has no action against any Bank because it is not possible to locate where payments were made, and a conveyancing lawyer was used, an action for all paid amounts plus legal interests and costs, and refund of fee and associated costs is claimable against the lawyer´s indemnity insurance

Banks liabilities are stronger as there is an special law covering these situations and stating liabilities of Banks in regards to protection of off plan deposits, but…. if you hired a lawyer and due to his lack of diligence, rights of law 57/68 cannot be played, he is liable. To more or less extent depending on how strong your rights using Law 57/68 are or can be.

For more info you can look at Costaluzlawyers litigation service



Like 1




2 Comments


gill_malouf said:
06 December 2016 @ 17:52

Hi Maria,

Can you please confirm that I have indeed got a case as my bank guarantee had no IVA included in one contract and the other had no individual guarantee. Thanks in advance.


mariadecastro said:
10 December 2016 @ 12:54

Dear Gill:

If there was a general guarantor for the development or your funds were paid into the developer´s account, the strategy is as follows:

- Unguaranteed amounts against either General Guarantor or Bank
- Conveyancing fees and associated costs of litigation against conveyancing lawyer

Cheers

M


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