Italy: Judgment For The Claimant For Breach Of Contract Against The Developer In Respect Of The “El Caribe”Development
Last Updated: 11 January 2013

12 April 2012: On 27 March 2012 the Court of Locri, Calabria, has handed down an important judgment in respect of a claim brought by Giambrone Law ILP on behalf of an investor, seeking a refund of the deposit for breach of contract in relation to an aborted property purchase in the "El Caribe" development in Capo Rizzuto (Calabria).

This development was marketed in 2007 as a "5 start Resort" in the North East of the region of Calabria by Italian Connection (part of the Medsea Estates Group) and was due to be completed in May 2009. The developer breached the terms of the preliminary contract and legal proceedings were subsequently instituted by the claimant. The judge in this most recent judgment declared the contract between the parties to be null and void as it found the developer in breach of contract and in violation of its legal obligation to procure the buyer with a valid bank guarantee.

As a result, the Court ordered the Defendant to refund the sum of €72,678.29 (the deposit) plus interests and legal costs.

"There is always a risk when buying off-plan and Calabria could only really be described as an untested market at the time when the majority of buyers paid their initial deposit" commented Gabriele Giambrone, Managing Partner of Giambrone Law ILP, the award winning Anglo-Italian law firm and widely recognised as one of the leading experts on Italian law in England "Calabria - as a market for off-plan properties - grew too quickly and some of the builders were affected by the global economic crisis. Whilst there are always risks, Italian law protects buyers in these circumstances and should go some way to restoring affected clients' faith in the region."

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