Enforcement and Third-Party Buyer Rights: Commentary on Order No. 9369 of 2024

The recent Order No. 9369 of 2024, issued by the Court of Cassation, addresses a crucial issue in Italian civil law: the rights of the third-party buyer of mortgaged goods in the event of forced execution. This ruling fits into a complex legal context, where the provisions of the Civil Code and the regulations regarding forced execution must be interpreted in a way that ensures fair protection for the parties involved.

The Rights of the Third-Party Buyer

According to the Court's ruling, the third-party buyer of mortgaged goods, who has registered their purchase deed prior to the commencement of the execution procedure, has the right to oppose the creditor with all the exceptions that the debtor could assert. This principle is based on Article 2859 of the Civil Code, which states that the third party cannot be penalized for the debtor's inaction.

  • The third-party buyer does not participate in the debtor's condemnation proceedings.
  • They can raise exceptions even if barred to the debtor due to res judicata.
  • The priority of the registration of the purchase title is fundamental to legitimize such oppositions.
In general. The third-party buyer of the mortgaged goods, by deed registered prior to the filing of the debtor's condemnation request, if they did not participate in the relevant proceedings, can oppose the executing creditor, pursuant to Article 2859 of the Civil Code, all the exceptions that the debtor could have raised without the preclusion of res judicata, as the negative consequences of the debtor's inaction cannot be imposed on the third party, resulting in the possibility that their opposition to the real estate seizure can also be based on defenses that would be barred to the debtor, as arising from the res judicata formed against them.

Implications of the Ruling

This ruling is of significant importance, as it clarifies that the third-party buyer is not merely a passive observer in the forced execution process. In fact, the ability to raise exceptions that the debtor can no longer assert due to the preclusion of res judicata offers substantial protection for the interests of the third party, who could find themselves in a vulnerable position if their defenses were not recognized.

Conclusions

In conclusion, Order No. 9369 of 2024 represents an important step in protecting the rights of third-party buyers in the context of forced executions. The Court of Cassation emphasized the principle that the protection of the rights of those purchasing mortgaged goods must be guaranteed, preventing the debtor's passivity from harming the legitimate interests of a third party. It is therefore essential to pay attention to the priority of the registration and the exceptions that can be raised, so that the rights of all parties involved in the process are respected.

Bianucci Law Firm