The Courts today ordered that the previous owner of the Marsaxlokk restaurant be awarded €273,776 by the Commissioner of Lands.
The Sailing Club had leased the “Beland Guest House” and the “Sajjied Restaurant” locations from the Commissioner of Lands.
The club’s lease was terminated by the Commissioner of Lands, however Mr Anthony Gatt, owner of the Marsaxlokk Sailing Club Company, had spent a large amount of money to rent and manage the properties.
Mr Anthony Gatt argued that the Lands Commissioner ignored ‘goodwill’, and in the issued tender following his eviction, did not mention, “as is normally done in these situations”, that the winning applicant had to pay the previous owner for the works carried out and goodwill accumulated.
The land was originally leased to Air Supplies Ltd, however the site was effectively in possession of Mr Anthony Gatt since 1992.
Anthony Gatt, who obtained the property from Air Supplies Ltd, said that he built an 11-room guest house from his own money and also built the restaurant. He said that in total, he spent LM 200,000. In January 1990, Mr Gatt bought shares on the same property
In 1993, a certain Mr Joe Baldacchino approached Mr Gatt, asking to lease the property from him, however Mr Gatt informed him that as it is government who owns the property, he could not lease it without approval. A management agreement was then signed between Mr Gatt and J&H Company Ltd. Baldacchino then changed the name of the restaurant to “Is-Sajjied Restaurant”.
Mr Gatt testified that Mr Baldacchino paid him according to the information stipulated within the management contract up until 2003, and this is why he struggled to pay for the lease from government as he was not earning any income. Mr Gatt said that he had initiated several proceedings against J&H Company Ltd; however, these are still pending.
Mr Gatt claimed that discussions with the former Lands Commissioner Albert Mamo in order for the lease to be transferred to J&H Company Ltd, while J&H would pay Mr Gatt LM 70,000.
After two months, Mr Gatt received an eviction notice and Mr Gatt was told he would receive the goodwill payments. However, contrary to the agreement, when the tender process concluded in 2009 and a new owner was found, the conditions did not require the new owner to make these goodwill payments.
Several meetings occurred between the Commissioner of Land, Mr Gatt and Mr Mamo, where an agreement that the winning bidder would pay Lm130,000 to Gatt for the goodwill. The Minister at the time, Tonio Borg, had approved.
Mr Gatt had testified that a reshuffle took place and the Minister was changed, along with the Director. The tender was then released without any mention of goodwill payments.
Justice Jacqueline Padovani Grima said that “government is one entity, and a change of one Minister to another does not result in the revocation of decisions taken and approved”.
The Lands Commissioner claimed that the conditions of the lease were broken due to the sub-let.
The Judge found that Mr Gatt invested around €465,874 in the property and that €192,098 was owed in arrears to government, as such €273,776 was ordered to be paid to Mr Gatt.
Dr Edward Gatt appearing for the plaintiffs.