The Arrecife City Council has been ordered to pay 350,000 euros to the company Fuerteventura Promociones y Producciones S.L. for the celebration of ‘La Fabulosa Feria de Billy Capers’. The sentence, issued on September 22, upholds the promoter's claim and obliges the Council to pay the amount claimed, in addition to legal interest since the administrative claim and court costs.
The company went to court to claim the payment of 350,000 euros linked to the event, while the City Council opposed the lawsuit, considering that there was no administrative contract or legal basis to justify the obligation to assume this expense.
The sentence upholds the company's claim and annuls the presumed challenged act. The ruling is based, according to the municipal decree analyzing the possibility of appealing it, on the doctrine of unjust enrichment, considering the contracting of services, their execution, and the lack of payment to be proven.
However, the City Council maintains that an administrative contract for the event was never formalized. Among the arguments included in the municipal file are the absence of an award, expenditure authorization, budgetary commitment, favorable audit, and contractual formalization.
The Council also argues that the contacts made with the promoter were of a preparatory nature and were aimed at studying possible collaboration formulas, but did not constitute a firm commitment to contract. According to the decree, the file finally received an unfavorable report from the Contracting Department and its processing was not continued.
Another aspect questioned by the municipal defense is that the company proceeded with the organization of the fair without an award or an administrative resolution that would commit the City Council. The Council considers that the promoter undertook the development of the project at their own responsibility and business risk.
Furthermore, the City Council doubts that an effective economic benefit equivalent to the 350,000 euros recognized in the sentence has been proven. In particular, it questions the valuation of the alleged advertising return and considers that there is no sufficient objective justification to quantify it at that amount.
The City Council will appeal the sentence
After the conviction, the mayor of Arrecife, Yonathan de León, has signed a decree, dated October 1st, by which he orders to file an appeal against the sentence.
The decree warns of the risk that, in the opinion of the municipal defense, would consolidate a precedent that would allow the generation of economic obligations for the Administration for activities carried out without an award or a valid contractual link.
The resolution orders the transfer of instructions to the municipal Legal Counsel to prepare and formalize the appeal within the legal deadline.
Add La Voz de Lanzarote as a preferred Google source.
Stay informed with the latest current news.