The former owner of a Marsaxlokk guesthouse and restaurant, that operated on leased public land, has been given €273,777 in compensation after a court ruled that he suffered because of a u-turn caused by a change in ministers.

A court ruled that the Commissioner of Land failed to include Anthony Gatt's business' goodwill when he issued the tender to lease the land to new owners for 25 years.

The decision not to include the goodwill was a u-turn taken by the commissioner when there was a change in minister - after a previous minister had approved including the goodwill.

"There is one government and a change in minister should not result in decisions that had been taken and approved, being revoked," Madam Justice Jacqueline Padovani Grima ruled.

She noted that Mr Gatt, through his company Marsaxlokk Sailing Club Company, had leased the land in the area known as Ponta ta Qrejjen in Marsaxlokk from the government in 1980. Over the years he invested €465,875 to build the Beland guesthouse and a restaurant, now called Is-Sajjied.

Following health problems, in 1993 he entered a management agreement with Joe Baldacchino, whose company was called J &H Company Limited. This agreement resulted in a range of legal disputes between Mr Gatt and Mr Baldacchino who still has pending court cases. Mr Gatt started falling back on his rent payments to government, resulting in a pending bill of €192,098.

In 2006 an eviction order was issued asking Mr Gatt to vacate the property, but J &H Company was allowed to keep operating the restaurant.

The government then issued a call for tender for the lease of the land for 25 years. During meetings between the Land Commissioner and Mr Gatt is was agreed that the tender would include the goodwill and that the amount Mr Gatt owed in rent would be deducted from the goodwill. This agreement was approved by Minister Tonio Borg.

But, following a cabinet shuffle and a change in minister, this agreement was not honoured and the tender was issued without including the goodwill. The tender was awarded to a company, owned by Mr Baldacchino's son, in 2009.

The judge ordered that the Commissioner to pay Mr Gatt €273,777 in damages that amounted to the money he invested in the property, minus the rent owed.

Lawyer Edward Gatt represented Mr Gatt.

 

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