ICC Task Force on Corruption in Arbitration ...
Posted by Calavros Admin
Posted Jan 2019
Our firm has successfully represented various individual clients before the Greek Civil Courts with regard to claims raised against them by the banking institution of a former leading Insurance and Banking Group for the repayment of Loans granted to our clients under an elaborate and complex pre-drafted payment scheme (https://calavros.gr/2018/02/14/significant-success-litigation-team). Pursuant to the terms of said scheme the Borrower undertook the obligation to pay the capital of the Loan to the Insurer (under the form of insurance premium) and the interest of the Loan to the Bank. The same scheme resulted essentially in leaving thousands of borrowers who had already repaid the greater part of the Loan’s capital to the insurance company (in the form of insurance premiums) exposed, when said Insurance Group went bankrupt without having transferred the paid capital of the Loan to the Bank. The latter in turn refused to discharge the already repaid loans, despite the fact that Borrowers had been urged in accepting the aforementioned payment scheme by the Bank itself. Following landmark rulings of the Greek Civil Courts (of both instances) discharging our firm’s clients with regard to said claims, on the grounds of misuse of rights, our Litigation Team’s relevant legal argumentation was adopted once more by the Greek Courts by virtue of Decision No 13090/2018 of Athens’ Single Member Court of First Instance.
By virtue of said decision the Court dismissed the Bank’s claims of similar nature against our Clients, rendering the concerned contractual payment terms null and void as abusive and misleading. In this case, however, the opposing Bank which granted the Loan was not a member of the above-mentioned Insurance and Banking Group or otherwise tied to the latter. This most recent ruling can therefore serve as a precedent in favor of all Borrowers – Consumers who have received a Loan under similar payment schemes, regardless of the existence of any connection between the Bank and the Insurance Company involved.