A change in minister had resulted in a “U-turn” that cost the owner of a guesthouse, situated on leased public land, more than a quarter of a million euros, a court ruled yesterday.

The owner, Anthony Gatt, was awarded €273,777 in compensation after the court found that the Land Commissioner had failed to include the goodwill of his business in a contract leasing the land to new operators.

This went against a decision taken under the previous minister, whereby the goodwill was to be paid to Mr Gatt, minus back rent he owed.

“There is one government, and a change in minister should not result in decisions, which had been taken and approved, being revoked,” Madam Justice Jacqueline Padovani Grima said in her judgment.

In 1980, Mr Gatt, through his company Marsaxlokk Sailing Club, leased the land in the Ponta ta’ Qrejjen area of Marsaxlokk from the government. Over the years he invested €465,875 in building the Beland guesthouse and a restaurant, now called Is-Sajjied.

In 1993, following health problems, he entered a management agreement with Joe Baldacchino, whose company was called J &H Company Limited. However, Mr Gatt fell behind on his rent payments to the government, resulting in an outstanding bill of €192,098.

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

The government decided to issue a call for tenders for the 25-year lease of the land. The Commissioner of Land and Mr Gatt agreed that the tender should include the goodwill, from which the amount he owed in rent would be deducted. This agreement was approved by former Minister Tonio Borg.

But following a change in minister, the tender was issued without including the goodwill, dishonouring the agreement. In 2009, the contract was awarded to a company owned by Mr Baldacchino’s son.

The judge ordered the commissioner to pay Mr Gatt €273,777 in compensation, the money he had invested in the property minus the rent he owed.

Lawyer Edward Gatt represented Mr Gatt.