Is my lawyer professionally negligent?
Hello,
Could someone who understands Spanish law please advise whether I can sue my lawyer for professional negligence?
Our developer has gone into Administration, their bankers have repossessed the site, and in court last week, allegedly, the bank offered in full and final settlement an amount equivalent to 25% of all deposits paid by those people buying off plan. I say allegedly, as the lawyer does not even bother to return phone calls, or emails.
I understand 15 or so buyers , ( all Spanish) have received full refunds.
I understood my lawyer had a professional obligation to request a bank guarantee - Is this correct?
My lawyer is going will take 5% of the money recovered, which is a kick in the teeth givn I have paid him for doing the conveyancing, and is suggesting we go after the developer. Seems a bit pointless to me given the developer has gone bust.
Any advice would be gratefully received.
Ps, this is the letter we received. Sounds like a load of rubbish to me.
Dear Sir and Madam
The purpose of this letter is to update you the situation of the “CONCURSO VOLUNTARIO DE ACREEDORES” (receivership situation) of ACONSA - the developer of the Euro Cam Beach complex in Torrox - declared due to its situation of financial insolvency.
The Administrators have requested the definite liquidation of the company. This means that, apart from the practical impossibility of paying the credits, the purchase contracts have to be cancelled. Since the Bank will either be awarded or will acquire the buildings which were in construction and abandoned, it has offered the buyers a compensation of 500.000 Euros, which will have to be distributed proportionally to the deposits paid by each one: this implies a refund of approximately 25% of the amounts paid.
Accepting this offer not only means receiving money, but it also signifies that the rest of the quantities will not be given up and that the claim will be maintained until the end against the developer. It also implies the immediate resolution of the purchase contracts and to this end, it is necessary that you make a special power of attorney, which template you will find here attached. It is very urgent that you have a Notary officialise that special power with his signature and an apostille and that you send it to us to the direction of this office.
The moment the contracts of resolution are signed, the Bank will give the amount offered and we will proceed to distribute it among the buyers, deducting, as you already know, 5% of the amount claimed to cover the Court Proctors and the Lawyers´ fees for the legal actions necessary to carry on with the claim.
It is very important to insist on the emergency of having the special power of attorney done and sent to our office. This operation has to be all done during the first fortnight of October, since, if it is done later, it will be even more difficult to carry it out and will imply a possible risk of not receiving any refund at all.
Should you have any questions, please feel free to contact us, either by phone, email or any other way you prefer to the following contact details:
“Name of lawyer redacted for obvious reasons”
What good having a BG by my Laywer did me anyway?
Dear Sirs
I am not all that clued up on the legalities of these bank guarantees and how does they really operate in the favour of the buyer when clearly they did me NO good when the crunch came. My property was delayed on delivery by 6 months by the builder to March-2009. But March-2009 came and went and there was no news from any parties including my lawyer or the builder that when will the property will be delivered. I was under the impression that I could with my lawyers’ help would be able to enforce my bank guarantee soon after March-2009. But I was told NO it’s at the discretion of the Bank or Judge or whatever - I don’t quite know what legal argument on this is. Anyway as far I was concerned the bank guarantee did me no good or my laywer for that matter.
Even though the property was completed Nov-2009 but not having a licence of habitation I should have been entitled to make a claim on the bank guarantee. But alas I was told NO; I must cancel the contract and Litigate. This is the only option.
So why the bias of buying in Spain is weighs towards the builder when things go wrong and it’s the buyer who has to do all the hard work of fighting for his rights and paying for in many ways - financially, emotionally, and endless stressfully.
So my plea is this that I ask humbly to our dear Spanish Lawyers please do not abandon us in this needy times of making claims on breached contracts and help to restore our faith in Spain and its legal systems.