Tonight, Rene Villanueva Sr. the owner of RSV Media - more well-known as Love FM - is $400,000 in debt because Justice Oswell Legall has ruled that he and his son owe the Development Finance Corporation this money.
Viewers may remember that the DFC took out a lawsuit in November 2011, against Rene Sr. and Jr. for over $800,000 over a loan they acted as guarantors for when they took over ownership of a nightclub in San Ignacio.
It is a complex chain of events which led the Villanueva's to be put in this position, so tonight; we spoke to Michael Young, one of their attorneys, who represented them in this case.
Here's how he explained the issues in the trial, as well as the judgment:
Michael Young, Attorney
"DFC lent the Villanueva's and their company some years back and the purpose of that was so that they could buy over the Cahal Pech property and that property was in the hands of Rick The Ruler before that and so Villanueva's bought it over with financing from DFC. After sometime Richard Hoare agreed to buy over the property. At that time the Villanueva's were using that premises for business for dances and so they were making money from it. Richard Hoare came in and agreed to buy it over, took possession of the place - all of this done with the agreement of DFC and then as far as the Villanueva's were concern the loan had been taken over by Richard Hoare. But Richard Hoare changed his mind and then left the place and then DFC put the loan back on the Villanueva's and that's where the controversy started."
"Ultimately DFC sold off the property but claimed $898,000 as a balance from the Villanueva's and they are taking the Villanueva's to court that claiming that amount and the Villanueva's of course on the advice of their attorneys raise some defenses, they involve technicalities of law but fundamentally what the Villanueva's say is that you DFC by your conduct lay us to believe that Richard Hoare had assume the loan and furthermore that the matter of the loan balance would have been settle by your selling the property and secondly that we the Villanueva's would take out a claim against Richard Hoare and his estate and if we collect from that case then we would pay you the balance if we do not collect then we would not have to pay you anything."
"The judgment was handed down this morning and the way to describe it is that both parties were partially successful. DFC had claimed $898,000, they were awarded $400,000 by the court which is actually less than half of what they claimed and so with a claimed of $898,000 against the Villanueva's they end up with a judgment of $400,000 and that is where things stand today."
Daniel Ortiz
"Sir, can you explain to us, did the judge give his reasons as to why he ruled the way he ruled?"
Michael Young, Attorney
"Of course, he actually gave a detailed judgment and I have only had the opportunity to scan the judgment quickly, I will certainly read it more carefully. The clients will also have a chance to read it and then they will determine what they are going to do on the advice on their attorneys of course."
Daniel Ortiz
"Although Justice Legall has ruled in favors of both parties your clients I believe still believe that they should not have to pay any of this money."
Michael Young, Attorney
"That has been their position but of course it is not what either of the parties thinks. It's a question for the court; it's a question for the judge and the court rules according to what they consider to what they consider to be the right position having regard to the facts and the law. As to what the Villanueva's will do after this as I say - that remains to be seen. We will be in discussions with them."
The Villanueva's have to pay costs plus interest.
