Getting Payments back from Royal Marbella
Getting Payments back from Royal Marbella Group (which traded as the Royal DUJA Group before filing for bankruptcy) was once an exercise in futility. Sir Geoff Hurst, among others, took the developer to court to no effect. As with other failed developments along the coast line, most of the developers don’t have money to pay anybody.
There are quite a few Royal Marbella Group developments which never got off the ground for a variety of reasons. The most famous is that at Aldea Beach in Manilva on the Costa del Sol but there are others, such as Royal Vinedos del Mar and Lince Santuario near Seville, where Sir Steve Redgrave invested. The Aldea Beach development was issued with illegal building licences by then local mayor Pedro Tirado. Tirado was later imprisoned for accepting bribes, which is of no comfort to those who have lost hundreds of thousands of pounds/euros and, in some cases, millions because of his corrupt regime.
Many of those who have lost out are based in the UK and Ireland as these off-plan developments were marketed heavily at the height of a property driven credit boom in both countries.
Royal Marbella Group has been taken to court on many occasions, some of the cases have even been successful, but to the best of our knowledge nobody has ever been refunded by suing the developer.
Clients have, however, been refunded by suing the bank involved in this project, Abanca. We know this because our Spanish office already has had three successful cases against the bank for the DUJA Group. We are now in the process of trying to negotiate settlement arrangements with the bank for other affected clients. This could potentially shorten the amount of time it will take to get refunds of money invested. The court procedure typically takes 12 months. This can rise to 18 months if the decision is appealed by the bank. Banks typically appeal new rulings, but are obviously slower to do so when they have already lost cases on a specific development.
These cases were taken under the auspices of Ley 57/68, which decrees that the bank, in this instance Abanca, has a duty of care to its client (the purchaser) to protect their funds and to make sure a Bank Guarantee is supplied. The bank is found to have failed its clients on both of these criteria so it has been instructed to refund the clients payments plus interest over the period since the deposits were made. These clients have now had their money refunded.
If you have been involved in any of the Royal Marbella Group projects that were never built please visit our APPLY NOW page as there is a very high probability that you have a strong case to make a claim against Abanca and other banks used by the group.