Property Investment Companies (SCIs)

This decision provides important insight into property law. Here is what it means for you.

The Situation

Property investment companies (SCIs) – ordered to compensate purchasers for the loss they caused by concealing certain facts – brought an indemnity claim against the notaries involved in the property development transaction, alleging faults committed against them. The Court of Appeal, in dismissing the claim of the SCIs, legally justified its decision by noting that they had intended to deceive the purchasers through fraudulent conduct and, by that same conduct, had induced the notaries' negligence. From these findings, the appellate court was able to deduce that the notaries had committed no breach towards the SCIs and were therefore not obliged, in the context of an indemnity claim (as opposed to a subrogated claim), to indemnify them against the judgments entered against them.

What the Law Says

This decision confirms the fundamental principles of property law.

Key Points

• Strictly comply with statutory limitation periods for claims.
• Keep all your supporting documents (deeds, instruments, correspondence).
• Be proactive: preventive advice is always cheaper than litigation.

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