Hotel sues shipyards

Two companies yesterday filed an application in the First Hall of the Civil Court claiming that they had suffered damages as a result of the actions taken by Malta Shipyards over a contract to accommodate foreign shipyard employees.

Hotel Cerviola Ltd and Marsascala Holiday Complex filed their action against Malta Shipyards Ltd.

Hotel Cerviola, which was managed by Marsascala Holiday Complex Ltd, had a contract with the shipyards which was valid until March.

But Malta Shipyards Ltd had suddenly cancelled the contract on January 1. This, said the two companies, was an act in bad faith and had caused them to suffer damages. They also claimed that the shipyards, which belonged to the government, had issued a call for tenders to accommodate foreign workers from April 1.

The two companies had submitted their tender but had been excluded by the Malta Shipyards even though the tender, they claimed, was advantageous to the shipyards.

The two firms asked the court to declare that their exclusion was null and void as the shipyards had not observed the principles of natural justice.

The court was also requested to order Malta Shipyards Ltd to pay them damages.

Lawyer Joseph Brincat signed the application.