"Neither party a winner" in bitter dispute between ex-lovers

Tuesday 01 September 2020

A lengthy and acrimonious dispute between an ex-couple over the ownership of two run-down boarding houses in Havilland Street has finally reached a conclusion in Guernsey's Royal Court.

Paul Jorge Oliveira and Ludovina De Jesus Teixera Da Silva appeared in court against each other in June, with a written judgment recorded this month.

The pair, who used to be in an "intimate relationship", were jointly involved in the operation of two lodging-houses in Havilland Street, Marisol and Dolphin Place. Purchased in 2004 and 2005, they were funded by a Bond secured on Oliveira and Da Silva’s realty and personalty. 

In October 2009, Da Silva purchased a foreign timeshare, registered in her name only, and shortly after the couple's personal relationship reportedly broke down completely and Oliveira moved into Dolphin Place. 

Pictured: The Income Tax Department reportedly became frustrated with the pair's lack of "complete and adequate" business records, leading to it imposing penalties. 

There were further issues at the time; a fire at Marisol in 2009 led to a "very negative" fire safety inspection of Dolphin Place which culminated in a successful prosecution of Oliveira and Da Silva as the owners of Marisol Limited, the parent company that Dolphin Place registered under.

The fire at Marisol required a considerable amount of remedial work and repair, part of which was covered by an insurance payment of £21,000. Remedial work instructed at Dolphin Place was never carried out and Oliveira moved out in 2015. 

The dispute has rumbled on since then without any real progress, during which time the value of each property has diminished considerably over the years, mainly due to the state they are now in. 

An early Court hearing was held in 2018, at the end of which the parties agreed to sell the two properties.

Pictured: Marisol Limited was struck-off the Register on 16/05/17 for failing to provide its annual validation or pay the fees.

Judge Russell Finch and Jurats Burnard, Tooley and Wyatt ruled that each party receive an even split from the sale of the two properties, after a £26,000 adjustment was made in Da Silva's favour. 

Judge Finch said the court's decision had been complicated by the pair's incomplete accounts, limited bank records and the cash payments they often took for rents and paid for repairs. 

"The rents were paid largely in cash and much of the “one-off” expenditure seems to have been settled in cash," he said. "Problems also exist in relation to the bank statements produced in evidence. 

"The parties themselves, as stated, are wholly at odds about almost every aspect of the dispute and readily ascribe a bad faith to each other." 

Pictured: Dolphin Place is currently under offer with Mawson Collins for £150,000.

"At best, Oliveira can be characterised as a “sleeping partner” on the facts put forward. However, if nothing else, Marisol was jointly owned, and Oliveira and Da Silva each held one share in Marisol Limited. Any net proceeds from the sale of these properties should be split evenly.

"On the evidence it is apparent that a £26,000 adjustment should be made in relation to [Da Silva’]s contribution towards the purchase of Dolphin Place."

The pair were given three months to sell the properties; Marisol has already been sold and Dolphin Place is listed as being under offer. 

Judge Finch said it is time for them to put the case behind them and move on with their lives. 

"This case has been a running sore for both parties and this has been compounded by the present litigation, the costs of which are obviously substantial, especially for the parties, neither of whom are individuals of high net worth," he said. 

"Having carefully considered the Jurats’ findings, it is apparent that neither party can be regarded as a clear “winner” in this litigation. It has gone on for a long time and resulted in a full hearing. It is in the parties’ interests that it is now resolved, so they can get on with their normal pursuits."

 Pictured top: The case was heard in the Ordinary Division of Guernsey's Royal Court.