The client, a credit organization, contacted Fidelis Law Firm regarding a lawsuit filed against it. Following the borrower’s failure to perform their contractual obligations, an out-of-court foreclosure process had been initiated against the pledged real estate, the lawfulness of which was challenged in court by the mortgagor.
The plaintiff asserted that the foreclosure notice sent to them was defective, lacking essential information regarding the amount of the obligation, the method of property realization, and its liquidation value. Based on these arguments, the plaintiff requested the court to declare the out-of-court foreclosure unlawful.
Our team undertook the defense of the defendant credit organization. During the case evaluation, we analyzed the contractual relationship, the content of the foreclosure notice, the circumstances of proper notification, and the objections raised by the plaintiff. In addition, the applicable civil law regulations and relevant legal positions of both the Constitutional Court and the Court of Cassation were thoroughly examined.
Based on this analysis, we formulated a defense strategy focusing on the lawfulness of the notice and the validity of the claims made. Our objective was to present to the court the factual and legal grounds confirming that our client had complied with all requirements applicable to foreclosure notices.
During judicial proceedings, our lawyers demonstrated that the notice sent complied with all applicable requirements, and that the plaintiff was properly informed about the scope of the obligation and the foreclosure process. Rebutting the objections raised in the lawsuit, we showed that they were insufficient to grant the plaintiff’s demands.
The Court of First Instance fully dismissed the lawsuit filed against our client. The plaintiff appealed the judgment, and our team continued to defend the client’s interests at the appellate stage, presenting a well-substantiated position addressing the arguments in the appeal.
The RA Court of Civil Appeal rejected the appeal and left the judgment of the Court of First Instance unchanged. Consequently, our client’s position was successfully upheld across two judicial instances in this dispute challenging out-of-court foreclosure.
This case demonstrates that in protecting secured claims, both the proper legal organization of the foreclosure process and the readiness to substantiate the lawfulness of individual procedural actions in court are vital. A detailed examination of the content of the notice and the circumstances of its delivery became key pillars of the defense in this dispute.
If an out-of-court foreclosure carried out by your organization is being challenged in court, our lawyers stand ready to examine the contracts and procedural documentation, evaluate the claims presented, and ensure your legal protection in court.