A man has been ordered by a court to pay a penalty of €25,000 to his estranged wife as will as outstanding maintenance of €8,550.
The case was filed by a woman against her estranged husband and against Angerton Enterprises and Town House Limited.
The court heard that the two separated on November 21, 2009.
In the contract of separation, 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 pay a penalty of €1,000 for every day of default on his payments, after the third day of delay.
Angerton Enterprises and Town House Limited guaranteed the husband's obligations, including the payment of the penalties.
The wife later complained said her husband was not respecting his contractual obligations.
After various court proceedings a compromise was reached, their joint business was wound up and a part-payment was made. On December 3, 2011 it was agreed by contract that the husband, Angerton Enterprises, Town House Ltd and Cassar Weaving Ltd acknowledged that they were true, certain and liquid debtors in favour of the wife in the amount of €275,000.
The woman was then paid €30,000, and €20,000 was to be paid from the sale of jewellery. It was agreed that: the remaining balance of €225,000 would be paid by the husband, Angerton Enterprises Limited, Town House Limited and Cassar Weaving Limited in monthly payments of €5,000 each.
The court noted that the last payment was made in June 2012 and the court case was filed in October 2012.
In her application the wife referred to the clause requiring her husband to pay €1,000 for each day of default of payment, and requested the court to order him to pay €5,506,000.
In their reaction, the husband and the supporting companies described her claim as a form of usury. They argued that the husband could not keep up with his payments owing to debts and warrants issued against him.
The court said it was confirmed that the husband had defaulted on his payments. However, with regard to the request for the payment of penalties in terms of the contract, the court noted that one of the two children had turned 18 and payment for education in his case was no longer due.
The court also noted, among other points, tat there were periods during which the husband had honoured his obligations and therefore the penalties due amounted to €25,000.
In its judgement, the court ordered the payment of €8,550 in overdue payments for education and maintenance plus a penalty in terms of their contract of €25,000.