British homeowners win landmark ruling against CAM in Spain

PUBLISHED: June 20, 2012 at 6:18 pm  •  LAST EDITED: July 8, 2012 at 9:29 am
Business & Finance, National News  •  2 Comments

• Cam Bank has been ordered to return down payments for unbuilt homes

By Lenox Napier

A GROUP of British homebuyers have won a landmark ruling against a bank, which failed to return their deposits.

The 47 off-plan buyers are now to get their investments back in full, plus interest and damages.

The judge in Hellin, Murcia, declared that 55 sales contracts should be terminated due to ‘serious breaches’ by the developer, who failed to build the homes.

He ordered that a total of €1.5m, currently being held by the CAM bank, should be returned immediately.

The group had invested in the defunct Finca Parcs development in Agramon – getting so-called ‘bank guarantees’ from the CAM bank.

The ruling requires CAM and developer Cleyton GES, to return deposits to the members of the ‘Finca Parcs Action Group’.

The judge noted that the delay had already reached up to seven years and completion should not be left to the ‘discretion’ of the developer indefinitely.

A spokesman for the group insisted the ruling set an important precedent for similar cases across Spain.

He described it as ‘good for the image of Spain, its justice system and even the financial system.’

He added: “It is good to convey the message that the system in Spain works and issues, like this, can be solved fairly”.

One buyer Keith Rule, who put down €53,000 in 2006, added: “This is a great judgment and a credit to the work and determination of all those involved.

“The wider significance should not be underestimated.”

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