Litigation Success | Termination of a Sale Purchase Agreement and Order for returning money paid
We are thrilled to announce yet another Litigation success in the field of commercial disputes.
On 19 July 2022, we have successfully obtained a judgment by consent, in favour of our client, a Chinese investor who invested in real estate in Cyprus, and against a Cypriot land development company, for the cancellation of a Sale and Purchase Agreement through which our client has purchased, an off plan over €2 million villa in Cyprus.
Through particular provisions included in the Sale and Purchase Agreement ("SPA") our client, a Chinese investor, had the opportunity to request cancellation of the sale and the return of 100% of all money paid, all paid in advance during the time when the Cyprus Investment Program was still in operation. Following the Cyprus Investment Program's termination our client's application for naturalisation was rejected. Our client was not keen of challenging the Council of Ministers' decision through an Administrative Appeal, but neither was interested at keeping her investment in Cyprus. On those grounds, and with contractual provisions giving here the right to, our client opted to demand her money back from the property development company while the latter delayed and/or refused to.
Our claim included cancellation of the SPA as well as preparation and submission of an application for summary judgment. Gladly, within a couple of months from filing a legal action before the District Court, the Defendant, a Property Development Company, consented to judgment by consent and our client got an immediate judgment for her money to paid back to her.
What is a summary judgment?
A summary judgment is a decision issued by the Court without full trial; it is a discretionary decision of the court that is issued when the court is of the opinion that there is no genuine defense, or genuine dispute in general, as to the material facts of the case. This is not a common process but it can be requested by a Claimant through the submission of an application by summons, requesting from court not to hear the Defendant's case due to lack of a genuine defense.
What is an Administrative Appeal?
An Administrative Appeal is an appeal, or a recourse, filed before the Administrative Court, by a complainant (the Claimant), challenging the decision or an act of any organ, body, or state authority, exercising administrative duties to which the complainant is subject to. Challenging the Cyprus Council of Ministers' decision on the rejection of an application for naturalisation is considered to be an administrative decision which may be challenged by the complainant through the submission of an Administrative Appeal, or a Recourse as called as well, before the Administrative Court.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.