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Supreme Court Rules in Mallorca Compensation Case

13 Mar 2024 International Litigation and Arbitration

López-Ibor DPM has represented its client Birdie Son Vida, S.L. before the Spanish Supreme Court a claim against the regional government of the Balearics, which has confirmed an order of the High Court of Justice of the Balearics awarding a right to compensation of more than 96 million euros, for the conversion of urban land in the Muleta area of Puerto de Soller, in Mallorca, into non buildable protected land. The judgement of the Supreme Court was notified on the 6 March 2024 and has been widely published in newspapers of Palma, Barcelona and Madrid. The Supreme Court has clarified for good an arcane point of procedural law. Under Spanish law a motion of nullity (“casacion” or quashing a lower court sentence can only be filed against full judgments of courts or appeals or high courts), but in this case, it has been admitted for the first time regarding a court enforceable. The Supreme Court has reversed his doctrine and determined that enforceable court orders dictated on settlement agreements approved by courts of appeals or high courts can be assimilated to full judgment as they can be considered as “res judicata” because they put an end to proceedings of lower courts and therefore have access to the Supreme Court. The Supreme Court has decide that this part of the judgment will be new legal doctrine binding all local judges and court (a sort of “stare decisis“). Aside of this, the Supreme Courts made very interesting considerations on the merits about liability directly derived from legislative acts and the constitutional due process of law clause. Alfonso Lopez-Ibor and Pablo Henriquez de Luna has been leading counsel in the matter.