Court orders buyer to pay compensation to builder for not completing purchase

Brendan Burgess

Brendan Burgess

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Reported in today's Indo. Can't find it online

Mr Brian P Smyth paid a deposit of €29,000 to buy a property for €290,000 in February 2007.

The property is valued at €125,000 today.

Judge James O'Donoghue ordered Smyth to pay the builder €128,000 + his legal costs.

Smyth had a counterclaim which the Judge rejected. The article didn't say what the counterclaim was.

Ennis Circuit Court
Paddy Burke (Builders) Ltd
Eoin Ryan of Howarth Bastow Charlton as receiver over Paddy Burke

A stay was put on the order in the event of an appeal.
 
I don't know the ins and outs of this particular case but I think it's nuts!
I was threatened with court proceedings last year when a house sale fell through. The most stressful experience I have ever been through. Thankfully it didn't go that far but I lost money and was made to feel like a criminal to boot!
 
Why is this nuts. Smyth signed a contact. It looks like he is paying less than the contract price so somehow he's been left off something. Would love to know what the counterclaim was.
 
Maybe the counterclaim was that the builder took longer than promised to complete the house? At least by fighting the case in court it looks like the buyer got the property cheaper than the contract?
 
Mrs Vimes said:
Haven't seen this article either but I don't assume he got the property.
Click to expand...


Which could be one reason why he paid less than contract price. He's making up the difference between his contract price and what the builder actually sold for.
 
So he pays compensation without the asset? Worst result! sketchy details as to what the actual ruling means.
 
The Examiner has this story today - as I suspected the builder (or rather the receiver) keeps possession of the apartment.

Mr Smyth is appealing however so it will be up to the high court.
 
Thanks for the link. Cannot see how he can hope to win on appeal. He signed a contact for an apartment at x price. Builder has completed his side of the agreement in building and has done nothing wrong. Purchaser has the choice of paying full purchase price X and getting apartment. X price does not change depending on current value.

Unless builder did not complete on time as per contact, and even then based on stories on here, purchaser has no hope and am amazed he's getting legal advice to go further with all the costs that will entail.
 
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