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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 1139. Moral damage to be paid by Bank
Monday, April 28, 2014 @ 5:36 PM

First time  aCourt recognizes moral damage linked to improper marketing of preference shares.

The judgment of the Court of First Instance No. 2 of Santander has condemned the bank " Liberbank " € 4,000 to compensate a client for the moral damage suffered as a result of the subscription of preference shares. The inability to recover the invested capital caused the plaintiff severe psychological injury and a decrease in performance as a professional athlete.

The decision is a milestone in the assessment of moral damages resulting from the purchase of this high-risk financial product.

The general line taken by judges and courts, once declared the nullity of the purchase of preference shares, has been to reject the compensation for non-pecuniary damage, as there was no evidence to establish harmful effects susceptible of compensation other than those produced by the economic.

Thus, the judge understands that the drop in athletic performance of the plaintiff involves a "pure moral damage” beyond the economic loss.

The judgment that is not final and can be appealed, has been branded as “exemplary " by the Platform of People Affected by Preferred , but  it is still necessary to wait to more judgments in this sense before saying this constitutes a trend change.

Costa Luz Left

Chiringuito Los Troncos, Bolonia, Tarifa, Cadiz, Costa de la Luz, South western Spain, at facebook.com



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