July 2022

Judgment of the Athens Court of First Instance on the Cancellation of Foreclosure of a Property with a First Offer Price of 580.000 Euro

The decision of the Athens Court of First Instance No. 995/2022 was issued, which annulled the report on the forced seizure of the debtors' property (with a first offer price of 580,000 euros) for the satisfaction of alleged claims of a management company (Servicer) amounting to approximately 700,000 euros. In particular, as regards the validity of the foreclosure report, the court accepted two of the arguments raised. Particular reference should be made to the second ground accepted, where the court accepted the invalidity of the seizure report and the cheque for execution on the grounds that the debtors were not notified of documents proving that the Servicer was entrusted by the fund with the management of the specific claim against the debtor for which enforcement is being accelerated. As typically held: 'That is, while it is proved by the documents produced that the claim at issue was indeed transferred to the foreign company in question, the same is not the case with regard to the fact that the defendant was entrusted with the management of the same and therefore the required procedural requirement of proving the active legal capacity of the defendant is missing'. We have already addressed the issue of proving the active legitimacy of the servicer in a related article (see here).