Oller Abogados in landmark decision of unfinished development in Jacó

Developers and the trust bank of the iconic distressed development One Jacó Resort – located adjacent to one of the main entrances to the beach at Jacó- must pay out all sums invested by the homebuyers of one of the units.

So reads the Resolution Number 1824-13 of the National Consumer Commission, attached to the National Secretary of Economy and Industry in a landmark decision.

“We started this uphill battle three years ago. At first we realized that a conventional approach would not work on our client’s best interests. The idea of submitting a file with the National Consumer Commission stirred our legal interest. Pedro Oller first brought up the discussion and Andrés and I followed suit. It made all the sense in the world. Yes, it took time but by Court standards this is brief. All in all, we stand before a decision whereby we break ground and we will have our client’s interests secured.

Could I ask for more than the developers and the bank, which acted as trust, held accountable? Yes! We wanted all parties involved in this bogus project to respond but given how this was structured and the way the hearings progressed we do believe the best outcome was achieved.” Stated Ricardo Vargas, lead partner on behalf of Oller Abogados.

Do you envision an end? “We have focused on the investments undertaken by our client and will see that they are dully paid in due course. Yet there are many other investors in this project and others who seek restitution and we understand that. For Oller Abogados this is but one step in a succession of successful filings on behalf of other dissatisfied second home buyers in Costa Rica.” Added Vargas. The decision by the National Consumer Commission suggests as much.

A Landamark Resolution

After four years negotiating terms, the homebuyers secured these which the National Consumer Commission found were breached:

-            Unfilfilled due date.

-       Significant design deviations as decided unilaterally by the developer or builder, which undermined the investment of the homebuyers.

-            False advertising.

-            Undue or unjustified price increases.

-            Facilities and/or furniture discrepancies.

“All of the consideration elements which our clients undertook as true suffered unjustified and unapproved modifications. None of the changes were in our client’s best interests. Hence, the case was simple. Where we chose to battle was unique.“ said Andrés Mercado, property associate with Oller Abogados.

Based on several provisions of the Promotion for Competition and Effective Defense of the Consumer Law (AÑO), Oller Abogados devised a strategy. “They all looked at me with odd preoccupation and agreed just to be respectful. Yet it was clear. We had never been significantly involved in property matters. The crisis hit us with a learning curve that was very aggressive: We answered calls from over twenty prospective buyers in the first six months of 2010. If the US gets a cold, we sneeze. Yet this diagnosis was even worse and no aspirin was going to work. We needed to get in deeper and attack the virus.” Pedro Oller, the senior partner stated.

Three years passed, yet Oller Abogado’s had the client’s blessing that this would ultimately be a decision based on legality and would entail serious consideration. Finally the National Consumer Commission ruled that both the developer and the trustee were liable for the breach of contract.  They are to reimburse the homebuyers a sum of at least US$400.000 invested by the parties