Is that about Bank´s liability a JOKE?

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03 Sep 2010 12:00 AM by mariadecastro Star rating in Algeciras (Cadiz). 9419 posts Send private message

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Legal tip 337. Is that about Bank´s liability a JOKE? 
03 September 2010 @ 11:09 

Today, I wrote this email to someone who contacted  me, showing her sincere skepticism towards action 1.2 for banks liabilities and her desires to find some hope: 


Dear XXXX



Thanks for your sincere email. I am pleased to answer you:



If Banks had diligently verified that all amounts paid into their accounts for off plan developments, were covered by Bank Guarantees/ Insurance Policies, according to obligations set for them in provision 1.2 of Law 57/68, many (xxxxxxxxxx developer´s name)´s  buyers had their  money back in their accounts now.



Law 57/68 is a very advanced t its time ( 1968) Law which was stablished to prevent that very similar disasters to our days´happening in our country back in 1968 will never happen again. Unfortunately it is a Law that has been poorly written and even more poorly applied ( maybe because of its own lacks). There is an important group of Proffessors and Judges who understand Law 57/68 correctly, and it is increasing.  The consequences of that lack of care by Banks when receiving money for off plan buildings are now evident both in social life and in the reality of Courts everyday.



There is also a need of a renewed understanding of the role of Banks and financial institutions within the social fabric. They have special duties of care for money deposited in their accounts and cannot be focused just on ultra-benefits regardless how. One of the most important aspects of the social risponsability of Banks is a cared balance between own benefits and people rights and guarantees. They are in a position of trust.



We rely on these good Law scientifics and appliers ( Judges), we also rely on existing Case Law for the defense of this action,  and on a great and deep effort made by our team of specialists and advisors. We are sure Justice on this field will be coming very soon.



Best wishes,



Maria




Nerja, by Roberto Pecino at Flickr.com


 



_______________________

Maria L. de Castro, JD, MA

Lawyer

Director www.costaluzlawyers.es

El blog de Maria



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03 Sep 2010 12:16 PM by M11block Star rating. 179 posts Send private message

Maria can you explain how this process will happen. I believe you now have a group of disappointed purchasers who you are supporting taking the banks to task under the Law 57/68. The courts begin hearings again in September, when you thought this would initially be prepared for.  Do you have enough in the group? Are the banks likely to settle out of court?  In the present financial climates can the banks afford to payout? and How long do you envisage it will be if the banks don't settle out of court before the cases actually come to court?

Many thanks, R





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03 Sep 2010 12:22 PM by mariadecastro Star rating in Algeciras (Cadiz). 9419 posts Send private message

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Clients who are hiring our services for this action are being gathered in groups by development.  Claims are being sent to banks on a monthly basis.

As the action will be performed through  a declarative process, unless the Banks resort to settle out of Courts ( which might take from 2 to 6 months), the whole process for a First Instance Court decission may take from 6 to 24 months, on average.

Yes, I do think Banks have solvncy to honour these liabilities.

 



_______________________

Maria L. de Castro, JD, MA

Lawyer

Director www.costaluzlawyers.es

El blog de Maria



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23 Sep 2010 9:33 PM by Keith110 Star rating in the UK and I am lead.... 681 posts Send private message

Hi R (M11block)

Group actions should be more effective both in terms of cost and effect.  On the Finca Parcs development we have 63 purchasers in our action group.  We are taking legal action against the promotor Cleyton GES SL and the funding bank of the development - Caja de Ahorros del Mediterráneo.

Of course with this number of purchasers in our group we were able to negotiate reduced legal fees, so each member of the group will pay much less than if they were taking individual action.

The groups cannot be made up of purchasers from various different developments.  The groups must be for each individual development.  Each group will need a leader to collect and collate all the required information.  Ideally the group members will all be in the same situation - for example - all without Bank Guarantees or all with Bank Guarantees that the same Bank is refusing to honour.

The group leader will need to put in a lot of time and effort to build the group, gather the evidence and liaise with the chosen Lawyer.  But hopefully, it will all be worth it in the end!

We know, especially in Spain, nothing is certain in the judicial system, so even though a group may feel that they have a very strong case against the Bank, you must always be realistic and consider and bear in mind the risks of losing the legal action.  But again, with a group action the risks are 'shared' between the group.  So the individual risk may be lessened.

I know from experience it is not easy to get the group together - you need a pro-active group leader who is prepared to give up a lot of their time for free.  The more background and preparation work done by the group leader then the lower the legal fees for the group.

When searching for a Lawyer to represent the group always make sure that the Lawyer is INDEPENDENT and has no links to the Developer or Bank.

You may find this page from my Bank Guarantees in Spain website interesting:

http://www.bankguaranteesinspain.com/legal.htm

Kind regards

Keith



_______________________

LEY 57/1968
CLICK HERE FOR THE BANK GUARANTEES IN SPAIN WEBSITE

       
      

fpag@btinternet.com




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