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Property Abroad Problems

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Hi!

Was wondering if anyone has some advice. A couple of years ago my wife bought some land in Slovakia and instructed a company to build a house on it. The company built beyond what they were contracted to do and when they asked for money, the bank that supplied our mortgage said that the receipts that the company supplied were unacceptable and that they'd have to supply detailed receipts to get the money. This was conveyed to the building company who did nothing.

Earlier this year we received a court summons stating that we had breached contract and that we were being pursued for the total cost of the building costs + 14% of the total cost as interest and €10,000 euros as damages.

We received the letter the day before the court case so we couldn't make to to Slovakia for then.

Basically the person from the bank lied in court about the receipts and the judge ruled in the favour of the building company. Our lawyer was useless and we have since found out that she is best buddies with the lawyer for the building company and friends with the owners of the building company as well. The court also charged us €4,000 for a days hearing in court as well.

The judge ordered us to pay € 80,000 immediately. We've used our savings and are about €50,000 short. We've put the property on the market and are trying to sell it as quickly as possible.

We received a letter today saying that the building company are passing the debt to a debt collection agency in Slovakia. Does anyone know if they have any powers over here? Our lawyer in Slovakia is about as useful as a chocolate teapot. Anyone have any advice please!

Comments

  • N79
    N79 Posts: 2,615 Forumite
    edited 4 June 2010 at 11:32AM
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    vrbarreto wrote: »
    Hi!

    Was wondering if anyone has some advice. A couple of years ago my wife bought some land in Slovakia and instructed a company to build a house on it. The company built beyond what they were contracted to do and when they asked for money, the bank that supplied our mortgage said that the receipts that the company supplied were unacceptable and that they'd have to supply detailed receipts to get the money. This was conveyed to the building company who did nothing.

    Earlier this year we received a court summons stating that we had breached contract and that we were being pursued for the total cost of the building costs + 14% of the total cost as interest and €10,000 euros as damages.

    We received the letter the day before the court case so we couldn't make to to Slovakia for then.

    Basically the person from the bank lied in court about the receipts and the judge ruled in the favour of the building company. Our lawyer was useless and we have since found out that she is best buddies with the lawyer for the building company and friends with the owners of the building company as well. The court also charged us €4,000 for a days hearing in court as well.

    The judge ordered us to pay € 80,000 immediately. We've used our savings and are about €50,000 short. We've put the property on the market and are trying to sell it as quickly as possible.

    We received a letter today saying that the building company are passing the debt to a debt collection agency in Slovakia. Does anyone know if they have any powers over here? Our lawyer in Slovakia is about as useful as a chocolate teapot. Anyone have any advice please!

    Yes a UK court will enforce a judgement of a Solvakian court, subject to the correct application being made and with the amounts of money at stake it would be worth your creditors while to do so. All the usual options are open to them - CCJs, Charging Orders, Forced sale of UK properties, bankruptcy etc.

    You need to get a new Slovakian lawyer and see what your options are. Any appeal etc will need to be in Slovakia - the UK courts will not rehear the original case (although they may hold a hearing to decide how best to enforce the Slovakian court judgement - I suggest you employ a good English / Scottish law lawyer as well for this hearing as you may be able to apply for permission for a stay on the execution of the Slovakian judgement). The UK embassy in Slovakia will be able to provide you with a list of English speaking Slovakian lawyers if you are struggling to find a good one.
  • vrbarreto
    vrbarreto Posts: 54 Forumite
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    Thanks N79. The whole property deal is in my wife's name. We have no property here so I suppose their only recourse would be a CCJ. The oroginal judge said that we have no right to appeal his judgement, I suspect backhanders here as we've been cc'd into an email by mistake where our Lawyer emailed the company's solicitor asking how much money they'd like to extract from us. We're looking at changing solicitor (don't know who to trust) as well as taking complaining to the Slovak equivalent of the bar council about out solicitors conduct. We've told the building company that we will pay them out of the proceeds of the property sale. I suspect any action they take here will cost them as well.
  • N79
    N79 Posts: 2,615 Forumite
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    vrbarreto wrote: »
    Thanks N79. The whole property deal is in my wife's name. We have no property here so I suppose their only recourse would be a CCJ. The oroginal judge said that we have no right to appeal his judgement, I suspect backhanders here as we've been cc'd into an email by mistake where our Lawyer emailed the company's solicitor asking how much money they'd like to extract from us. We're looking at changing solicitor (don't know who to trust)
    As I have indicated the British Embassy will provide you with a list of English speaking lawyers. Although they do not guarantee the lawyers on the list it provides you with some assurance that they are OK.
    as well as taking complaining to the Slovak equivalent of the bar council about out solicitors conduct.
    Solicitors are regulated by the Law Society, barristers by the Bar - not that it matters to your case.
    We've told the building company that we will pay them out of the proceeds of the property sale. I suspect any action they take here will cost them as well.
    It will, but only the normal UK court fees to enforce a judgement, translation costs and their UK Lawyer fees - all of which they will be able to reclaim from you as part of any costs order.
  • vrbarreto
    vrbarreto Posts: 54 Forumite
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    Thanks. Will try and get this sorted in Slovakia before it gets to the point they try and recover the debt here.
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