A man was ordered to pay his estranged wife €25,000 as well as outstanding maintenance amounting to €8,550.
The woman took her husband to court over his failure to adhere to his contractual obligations.
Magistrate Josette Demicoli heard the two separated on November 21, 2009, and, in the separation contract, the husband bound himself to give his wife a capital sum as well as maintenance. He also agreed to pay for the education of their two children.
He bound himself to a penalty of €1,000 for every day of default
In addition, he bound himself to pay a penalty of €1,000 for every day of default on his payments after the third day of delay.
Two commercial companies guaranteed the husband’s obligations, including penalties but the wife later complained he was not respecting his obligations.
After a number of court hearings, a compromise was reached, their joint business was wound up and a part-payment was made. The woman was owed €275,000.
She was paid €30,000 with a further €20,000 to be paid from the sale of jewellery.
It was agreed that the remaining balance of €225,000 would be paid by the husband and companies in monthly payments of €5,000 each.
The court noted the last payment was made in June 2012 and the case was filed in October 2012.
The wife referred to the clause requiring her husband to pay €1,000 for each day of default of payment and asked the court to order him to pay €5,506,000.
In reaction, the husband called her claim a form of usury. He could not keep up with payments because of debts and warrants issued against him.
The court found the husband had defaulted on payments. However, with regard to the request for penalties in terms of the contract, it noted one of the children had turned 18 and payment for his education was no longer due.
The court also noted, among other points, that there were periods during which the husband had honoured his obligations and, therefore, the penalties due amounted to €25,000.