Been totally shafted

[junefrog]

I’m in shock and could really use some perspective.

A long-term friend (15 years, genuinely like a brother to me) and I agreed to buy a flat together at auction. He was abroad at the time, so I fronted the initial payment (£10,250) to secure it. We had numerous messages showing it was a joint purchase. He was moving funds and fully committed.

Out of nowhere, he’s now pulled out and is completely ignoring me. I’m left in a really difficult position legally and financially, as the auction sale is binding. He knew from the start we were going 50/50 and I didn't have all the funds to buy alone. To own a flat by the sea has been out dream for years.

I have clear proof of our joint intention and his involvement, so I know I can rely on that if it comes to court.

Has anyone ever taken legal action in a similar situation — e.g., claiming money back or losses via court? Did you have any success?

And, more broadl, how do you even process the emotional side of something like this? Fifteen years of friendship feels like it’s just gone. I'm a single parent and it's my son's future as well as mine.

Thanks for any thoughts or experiences — practical or emotional.

Agree. Does it really matter? The threads/questions stand alone as interesting dilemmas for discussion.

Playing Sherlock Holmes about a poster's comment history is obnoxioius and pointless.

Why not just move on silently instead of searching and "reporting" ? Why feel the need to censor?

There's no harm that could come to anyone by reading the OP's posts.

In response to the person who says the content of my prior message is 'just not true', (I seem unable to 'quote' via my phone to create the back link to their message) this is indeed true, and sitting beside me is my partner who is a barrister, and he agrees and cheers the Op on! It's a simple and painless process as long as there is evidence, and this may be informal evidence in the county court.

I knew that taking a person to court was a straightforward win with text messages, email or voice messages way before meeting my partner.

These messages are treated the same as a promissory note.

My advice to Op is to reclaim from the friend half of the loss, i.e. half of the deposit. However, she may actually be successful in reclaiming the entire lost deposit and if she wins, she can also claim court fees.

Any barrister worth their salt will tell you that they cannot possibly make such a statement without a lot more information from the OP.

Evidence that they’d agreed to make a joint purchase. She wouldn’t go through with the purchase, lose the deposit, then potentially have grounds to make a claim against him on the basis that she wouldn’t have paid the deposit if she thought he wasn’t going to be a joint buyer.

That again is not so. I said if she has evidence to show that the friend promised. That (text messages, usually) is often all the evidence people can bring to county court in a small money claim.

Tbf I think she does have a claim for breach of contract and can use promissory estoppel if the friend tries to argue there is not a contract between them.

OP bought a property in her own name. He is not responsible for that. I can't believe she did something so foolish but she did and she now has to manage the consequences. Going after someone else for financial redress is in no way guaranteed to compensate her. She can try but it will be very expensive and if she loses, she may have to pay his legal costs as well as her own.

Yes, she simply needs to show that she entered the auction in good faith, that she adhered to what they had agreed.

The only problem she has is if she has bid over the agreed sum, which would void their agreement.

Even if she does not litigate to regain the loss of (half of or all of) the deposit, letting the auction house take the deposit is the simplest way out.

Indeed. Remember though that it’s advisable to send him a pre action letter / letter before action and make sure to keep tabs on where he is, in case he goes to ground

They obviously do…I do it all the time. It really isn’t any bother at all 🤷🏼‍♀️

It's devastating for you OP but you have made a contract with the auctioners/agents/owner of the property, so that must be your first concern. You need facts. Can you somehow find the funds to complete the purchase on your own? Can you forfeit the 10K deposit and walk away? It might be cheaper in the long run than trying to take this man to court.

But that's what signed contracts are for. That's how people make committments. Chitchat over text messages or e-mail or in person is just that, chitchat. From a legal point of view.

It's too bad and I feel for OP but the friend made zero legally actionable promises. The signed contract IS the promise.

No, again, this is not how PE works. It’s law school 101 - the case is Combe v Combe.

The Court of Appeal disagrees with your first sentence.

https://www.haynesboone.com/news/publications/text-like-the-world-is-watching-creating-a-binding-contract

In Combe v Combe there was no underlying cause of action beyond PE. Here there would be a contract so the action is for breach of contract.

Did you not have a mortgage/ funds already in place?

IIRC when buying at auction you effectively "exchange" once you've had your bid accepted and paid the deposit so surely you need to be able to cover the whole purchase price before you start bidding 😵‍💫

Again, that’s not the point of PE. It is a shield and not a sword. You can, under English law, according to the principle set down in Combe v Combe, use PE as a shield to defend yourself if someone tries to sue you.

Her friend ain’t tryin’ to sue her.

If OP or others disagree, there are other solicitors out there to proffer their take on a pretty rock solid equitable maxim.

You appear to have fallen out with your entire family over this ‘friend’ OP. He is no friend to you, why were you even buying with him and not your husband?

Shield and not sword is not an equitable maxim… And the cause of action would be breach of contract. Why do you believe there is no contract between the OP and her friend?

I don’t think I’ve ever given my legal opinion on whether there’s a contract between the two. My whole schtick has been the WAY in which PE is used.

As I said, it is in my qualified legal opinion that PE is not applicable here. If anyone thinks differently, great. You don’t have to take my word for it. I can’t keep explaining shield vs sword!

Why do some posters seem to think they have a speshul insight into things?

The problem with small court judgements is actually getting the money. The judgement you get from the court doesn’t have the authority to get money from the other person. My ds took someone to court , and won, but no money ever got returned. The big satisfaction was knowing the judgement would pop up for a good few years when anyone did a financial search on the the loser thus messing up their credit scores for loans and credit .

I think you need proper legal advice. You can’t trust randoms on the internet who could be anybody!

You may have access to legal advice via your home insurance, car insurance or union if applicable.

I wouldn’t bother pursuing any legal action against him, it’ll just drain your energy. Do you still want the flat? Could you find another investor? Just thinking out loud here, but my main priority would be making sure you don’t lose the deposit you’ve already put down. Could you get a bridging loan to buy the property then remortgage it once you’ve done it up ?