Posted in: Case studies, Legal
We have just completed a successful construction class action litigation case through the Courts resulting in very happy customers, exhausted after many years of problems and the legal fighting.
In 2017 a group of house owners approached us one by one with serious problems after two years of living in their recently constructed expensive and luxury villas in Orihuela Costa in the region of Alicante.
Every time there was heavy rain the homeowners suffered severe water damage. They also had a great deal of flaking and mould (far more than would be normal). Also damage to outer walls and ground sinking externally.
After examining the claim and involving our surveyors, it was clear that there was a strong claim. We brought a legal action against the developer and the project architect.
In this Action, we explained that shortly after completion and purchase (2017–2018), all properties began to suffer serious and widespread problems. Mainly water ingress, damp, mould, flooding and condensation affecting walls, ceilings and floors. Despite repeated complaints, the developer and architect failed to provide an effective solution. An independent expert report concluded that the defects were serious, generalised, affected habitability and health, and amount to a functional ruin. Caused by design errors, poor supervision and defective execution of the works.
The claim argued that the developer was fully liable under both contractual liability and the Spanish Building Act (LOE). The homes delivered were not fit for habitation and did not meet agreed standards. Also, the architect was claimed to be partially liable due to design failures, particularly in waterproofing, drainage and structural detailing. The claim sought primarily the repair of the defects. With the developer being fully responsible and the architect liable for part of the repair cost.
Alternatively, if repairs were refused, the claim sought financial compensation of a high figure, plus interest, and additional compensation for damaged furniture in one property, along with legal costs.
In August 2021 (remember that the Courts had been paralysed by the Pandemic), we received the first Resolution of the case against the developer and the technical architect for their negligence. The Judge accepted that we were correct in our Action. They were sentenced to repair all the damages in accordance with the technical solutions proposed in the expert report provided by our architect.
The builder was condemned to 100% of the responsibility, but the technical architect had to compensate the builder with 33.42% of the cost of the repairs the builder would make to the houses. Thus the builder was found completely guilty of bad practice, and was condemned also to pay Court costs.
That Judge had read the whole legal action we wrote (hundreds of pages), read all the three architect reports and listened to all the detail over a 4 hour hearing! Very unusual in Spain. He produced a 30 page highly detailed and extremely complicated Legal Resolution. Always heartening to see when a Judge takes their work seriously.
Unfortunately, as always, there was the opportunity for the Builder and Architect to appeal the decision to the High Courts, after the usual 20 working days to do this. They did appeal, and after another 14 months the Alicante Provincial Court largely upheld our first-instance judgment in favour of the homeowners.
They confirmed that there were serious construction defects affecting habitability, including water ingress, damp, ground settlement and drainage problems. The court rejected the architect’s main appeal arguments. Confirming that the claim was correctly brought under the Spanish Building Act (LOE), that it was not time-barred, and that the defects went well beyond minor finishing issues. The court accepted that many of the problems amounted to functional ruin or defects affecting habitability. Also that extraordinary rainfall (DANA) did not exempt the defendants from liability.
However, the appeal court partially adjusted the scope of the architect’s responsibility. It ruled that the architect was not liable for all defects claimed, but remained responsible for specific issues only linked to design failures. Particularly water ingress through main doors, lack of adequate drainage, and ground subsidence around properties and swimming pools. Responsibility for other defects was attributed mainly to the builder and site manager. The court confirmed that the architect’s liability was limited to 33.42% of the repair costs.
It made no difference, we had won the case with the developer being fully liable.
Our barrister enforced the resolution and demanded that the Court repossesses the developer’s assets for the amount in the Resolution. We started to investigate the company and found it was formed by several companies.
As of this point, the claim was only for money, not for repairs, therefore the homeowners could make the repairs they wanted to or wait for the funds. When we would receive the money, it would be split per percentages in the Class Action.
Now at last the homeowners could also choose to safely sell their properties, as the Courts would not need to inspect the houses anymore!
By this stage, the homeowners were understandably disheartened despite the win and wary, quite rightly so. As it happened, Courts then went on strike for a couple of months so this caused even further delays and disappointment.
Then we had to give the very bad news in 2024 that the developer liquidated the company. It wound up and closed leaving no assets. It had no houses left, all were sold some time before.
This was devastating news, however our barrister spent a great deal of time studying the possibility of transferring legal responsibility to the directors of the developer company. He was not prepared to give up the battle.
The barrister found that there were 5 companies that were directors of the original dissolved company. He decided to write a new Legal Action to transfer the liability to the directors of all these companies, at a reduced cost to our clients. He was determined to not give up and to see a result for them.
He made a study of solvency, and obtained company house extracts. Again they are all limited companies, so their assets were limited to what they own. But it was clear they had a lot of money and it would be hard to again close all the companies. We submitted the new Legal Action at the end of 2024. A year later, at the end of 2025 we had the pre-trial and at the hearing, something very surprising happened.
At this hearing the Judge refused all the evidence from all the lawyers and said there would not be a main trial as would be usual. The Judge would make a Resolution straightway. He said the case was clear, so no more evidence was required, but did not say whether it was in our favour or against us. We were left wondering over the 2025 Christmas period.
Within a few weeks in January 2026 we had the Resolution and once again it was positive for us. A clear victory again in the local courts. We really expected the companies to appeal but their barrister called ours and said this was it, they did not want to go any further with court fees etc. to the High Courts again and were prepared to reach an agreement at long last and pay what they could.
We made a legal deal during February 2026 and this week the funds were at long last received by our grateful and happy clients. After 9 years, we had done it with another successful construction class action litigation case. Justice was served with the pay outs causing a great deal of financial harm to the companies.
Spanish Courts are overwhelmed and extremely slow and of course this case went through a pandemic as well as a Court strike. However each time the Courts saw almost entirely reason and the validity of our case. We cannot be happier and it serves to show that clients should never give up and that patience and trust is key in these cases, albeit it is so hard when living through the nightmare.
Our barrister is a litigation expert and especially in construction and class action cases. We will continue to fight on with other cases. But this was quite some story to tell you as an example, and we now wish these clients who suffered so much a peaceful and happy year, which they so deserve. No one should have to go through that hell after spending their hard earned money on dream properties in Spain.
These are some of the reviews that these clients have left for us below; we could not be happier for them.
“*As requested, I confirm that I have received the payment of the sum of money that is due to us following the court judgment. I would once again like to thank you and Pedro for all the work you have done. You have always given very good advice and have always been very clear in the different options and decisions we had to make.
I believe this is a great victory for all of us and a real slap in the face for that crooked developer. Many people I know, to whom I had explained our situation, told me it was a lost cause to go to court, that Spanish justice was corrupt and that we would never win! I’m really looking forward to seeing them again so I can explain the outcome of this case 🤣 Once again, a big thank you to the whole team 👏👍💪”
“I recommend this law firm for their professionalism, their thorough follow-up on cases, and their commitment to fulfilling their promises. Several of us property owners had been wronged by a dishonest developer, and thanks to the firm’s perseverance, particularly that of Amanda and Pedro, contrary to what many people predicted, we won our case and received financial compensation. A huge thank you to the entire team who got us out of a real mess! “
“We would like to confirm that the money is now in our account. We would like to thank you for a very good job. We are so grateful that it ended with a good settlement after all these years. Thank you once again. “
“Monies received thank you to you and Pedro I’ve not put a lot of input into the cause and left it in your capable hands many thanks”
“We have used Molina Solicitors for 7 years in a complex case and are very happy with the result. Pedro and Amanda work very professionally and we recommend Molina Solicitors.”