A notary was ordered to compensate a local band club after his failure to register the extension of a promise of sale resulted in the club having to renegotiate a new purchase agreement for a higher price.
Notary Charles Vella Zarb was ordered to pay €29,117.17,equivalent to Lm12,500,to St Peter's Band Club of Birżebbuġa after a civil court found that he had failed in his professional duties when he did not register the renewal of a promise of sale agreement entered into by the band club.
On July 29, 2004, St Peter's Philharmonic Society had signed the agreement with a third party to purchase premises in Birżebbuġa valued at Lm65,000.
In terms of this agreement, drawn up by Notary Vella Zarb, the purchasers paid Lm4,000 on the promise of sale. Another Lm15,000 were to be paid on the final deed, while the rest was to be paid afterwards in Lm3,000 installments.
The First Hall of the Civil Court, presided by Mr Justice Silvio Meli, heard how this promise of sale had been renewed twice, with the notary failing to register the second renewal with the Inland Revenue Department in terms of law.
This failure meant that the promise of sale lapsed and when the seller refused to sign the final contract, the club could not force the sale.
The court heard how the plaintiffs had to negotiate a new sale for Lm77,500 and how the final contract was finally signed before a different notary.
The defendant argued that although he had registered the original agreement and the first renewal, he had not done so in respect of the second renewal since the parties had not expressly authorised him to do so.
However, the court pointed out that this authorisation was implied since the renewal was effected "subject to the same terms and conditions " of the original agreement.
Moreover, the defendant never informed his clients of his intention not to register the second renewal of the promise of sale, the court observed.
The court upheld the plaintiff's request and ordered the notary to pay €29,117.17 equivalent to the extra sum which had to be forked out by the musical society to purchase the desired premises.
"A notary is a public officer in duty bound to execute the instructions of his clients who pay for his services," the court remarked. He cannot take unilateral decisions which are likely to prejudice the interests of his clients thereby betraying their trust.
Legal expenses related to the suit were also to be borne by the defendant.
Lawyer Henry Antoncich was counsel to plaintiff.