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Spanish Off-Plan Property - Bank Guarantees - LEY 57/68

This blog is for all those Off-Plan property purchasers in Spain who have not received Bank Guarantees for their deposit funds as required by Spanish Law, in particular LEY 57/68 Article 1.1 and 1.2 and are now at risk of losing their money.

In addition many purchasers who did receive Bank Guarantees are now finding that the Spanish Banks are refusing to honour them without legal action being taken by the purchaser.

PRESS RELEASE - FINCA PARCS - APPEAL SENTENCE DUE MARCH 2013
Wednesday, February 27, 2013

PRESS / MEDIA RELEASE - FOR IMMEDIATE RELEASE – 27 FEBRUARY 2013

 

FINCA PARCS ACTION GROUP vs CAJA DE AHORROS DEL MEDITERRÁNEO (CAM BANK) & SPANISH PROPERTY DEVELOPER, CLEYTON GES SL

ALBACETE APPEAL COURT DECISION DUE IN MARCH & SECOND LAWSUIT FILED IN THE FIRST INSTANCE COURT

FINCA PARCS ACTION GROUP – TIMELINE OF THE LEGAL ACTION – LAWSUIT 1

  2006 - No legally required Bank Guarantees for Off-Plan deposits totalling 1.5 million
    Euros
  February 2011 – Lawsuit 1 against CAM Bank & developer Cleyton GES SL filed to Court

  12 January 2012 - First Instance Court Preliminary Hearing
  21 & 22 May 2012 - Trial held in First Instance Court - Hellín

  8 June 2012 - Judgment released in favour of Finca Parcs Action Group
  CAM Bank and Cleyton GES SL sentenced to return deposits amounting to almost 1.5   
    million Euros to the buyers with the addition of legal interest and costs
  July 2012 - CAM Bank appeals the First Instance Court Judgment
  July 2012 - Finca Parcs Action Group submits Opposition to the CAM Appeal
  July 2012 - Finca Parcs Action Group file Provisional Enforcement Order to the Court
  August 2012 – CAM Bank pays full amount of deposits plus legal interest and costs
    to the Court
  Appeal to be heard by the Albacete Appeal Court
  Appeal to be decided on 4 March 2013
  Appeal decision will be announced by the end of March 2013

APPEAL BY CAM BANK (BANCO SABADELL)

 

Following the Finca Parcs trial in May 2012 involving 47 buyers at the Las Higuericas Finca Parcs development near Murcia, Spanish property developer Cleyton GES SL and CAM Bank (now SabadellCAM) were sentenced ‘jointly and severally’ liable by the First Instance Court to repay in full the off-plan deposits amounting to just under 1.5 million Euros paid by members of the Finca Parcs Action Group plus interest and costs.  Cleyton GES SL did not appeal the First Instance Court Judgment; however CAM Bank did Appeal.

APPEAL DECISION TO BE ANNOUNCED MARCH 2013

The Albacete Appeal Court Magistrates will make their decision on the CAM Bank Appeal on 4 March 2013.  The decision will be notified to all parties by the end of March 2013.

CONFIDENCE

Coordinator of the Finca Parcs Action Group, Keith Rule says that both he and their legal team at Costa Luz Lawyers/De Castro remain confident that the appeal court will dismiss CAM’s appeal and uphold the First Instance Court sentence in full.

He says;

“We have a very strong First Instance Sentence and our opposition to CAM’s Appeal included a significant amount of Case Law on the issue of banks liabilities according to Spanish Law, LEY 57/1968.  The number of examples of Case Law confirming the responsibilities and obligations of the banks according to LEY 57/1968 is increasing each month”

 

Despite its actions being described by the First Instance Judge as ‘banking malpractice’ CAM Bank continues to maintain that it is not responsible for the situation and that all irregular actions and illegalities were committed only by the developer.

 

APPEAL DECISION EAGERLY AWAITED BY OTHER OFF-PLAN VICTIMS

Other buyers of off-plan property in Spain who were not issued with the legally required Bank Guarantees to protect their deposits are awaiting the outcome of this case with interest as an Appeal Court decision can be used as a Case Law precedent in other similar cases.

Keith says;

 

“There remains great interest in our Finca Parcs case from other buyers of off-plan property in Spain who did not receive the legally required Bank Guarantees many of whom have their life savings at risk.  We have always believed that according to LEY 57/1968 banks have a liability in these types of cases.  We have worked tirelessly since 2008 to highlight this issue in the media and to the Spanish & British Governments.

Keith concludes;

 

“We are confident that in March our landmark First Instance Sentence against CAM Bank will be upheld in full by the Albacete Appeal Court   


SECOND LAWSUIT FILED ON BEHALF OF 13 MORE GROUP MEMBERS


In December 2012 Finca Parcs Action Group filed a second Lawsuit against the developer Cleyton GES SL and CAM Bank for another 13 group members who were not members of the group at the time Lawsuit 1 was filed in February 2011.  This second Lawsuit was admitted into procedure at the First Instance Court in Hellín on 2 January 2013 and was recently served on both defendants.

The value of deposits claimed by the 13 buyers in the second Lawsuit is just under 500,000 Euros.

CAM Bank & Cleyton GES must now submit their defence to the second Lawsuit and then the First Instance Court in Hellín will set a date for the Preliminary Hearing with a full trial to follow thereafter should a settlement not be reached in the meantime.



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