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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.

FINCA PARCS ACTION GROUP - APPEAL COURT DECISION DUE IN MARCH 2013
12 October 2012 @ 01:28

PRESS / MEDIA RELEASE - FOR IMMEDIATE RELEASE – 10 OCTOBER 2012

 

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

APPEAL COURT DECISION DUE IN MARCH 2013

FINCA PARCS ACTION GROUP – TIMELINE OF THE LEGAL ACTION

  2006 - No legally required Bank Guarantees for Off-Plan deposits totalling 1.5 million
    Euros
  February 2011 - Lawsuit 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

 

Following the Finca Parcs trial in May of this year 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 by the First Instance Court to repay in full the off-plan deposits 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.

DATE ANNOUNCED FOR APPEAL DECISION

Finca Parcs Action Group filed their Opposition to the CAM Bank Appeal and the Appeal was admitted into the Albacete Appeal Court on 3 September 2012.

4 March 2013 is the date that has recently been announced by the Court as the day that the Appeal Court Magistrates will make their decision.  The decision will be notified to all parties by the end of March 2013.

Coordinator of the Finca Parcs Action Group, Keith Rule explains;

“Three magistrates from the Albacete Appeal Court have been appointed to this case and will preside over the Appeal.  They will make their decision on 4 March 2013.  The decision will be released and notified to all parties by the end of March 2013 at the latest”.

CONFIDENCE

Keith says that both he and their legal team are very 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”


Jaime de Castro, Lawyer for the Finca Parcs Action Group comments;

“The most important steps have been taken and I have confidence that we will win primarily by the strength of the First Instance judgment and due to the number of favourable case law examples that already exist today which outline the responsibilities and obligations of the banks with respect to buyers who have large sums of money at risk on these off-plan purchases, all in accordance with Law 57/68”

 

Maria de Castro, Director of Costa Luz Lawyers, one of the two legal teams that have been working on this and other similar cases over the past 4 years adds;

"We are confident that the correct and accurate interpretation of Law 57/68 by the courts will be of interest to many people and families who bought off plan and are currently affected by similar problems. We look forward to the Albacete Appeal Court Judgment due next March”.


Despite its actions being described by the 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 is great interest in our Finca Parcs case from thousands of other off-plan buyers 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 amongst buyers of off-plan properties in Spain.  As a result we are seeing successful judgments against Banks in other similar cases as victims of Bank Guarantee abuse begin to benefit from sentences now being released by many Courts.

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   



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