Andersen wins fee cut for Intelier Casa de Indias
Andersen has advised Las Tinajuelas, the company that operates the Intelier Casa de Indias hotel on Plaza de la Encarnación in Seville, in its litigation against the Urbanism Agency (Gerencia de Urbanismo) of the Seville City Council. The ruling, which is now final, partially recognizes the economic imbalance caused by the pandemic and requires the agency to modify the economic terms of the contract.
The court established an exemption from the concession fee from April 2020 until 11 May 2020, followed by a 35% reduction from that date until 30 September 2021. As a result, the Urbanism Agency must refund Las Tinajuelas any amounts paid above the reduced fee during that period, after deducting sums already paid under the terms recognized by the court.
Background to the dispute
The conflict stems from a contract signed with the Seville City Council in 2015, which granted Las Tinajuelas a 30-year surface right over the municipal building on the square. The agreement also included an option to purchase the land, exercisable within the first 15 years, and an initial annual fee of €200,012 plus VAT, updated in line with the CPI. It also provided for a grace period with subsequent recovery of the amounts involved.
The pandemic altered the operating conditions of the hotel. The court partially recognized the resulting economic imbalance and modified the fee for the period between April 2020 and September 2021.
The Andersen team was led by Javier Toribio, partner in the Public and Regulatory practice and head of the area in Andalusia. According to Toribio, the case required a legal strategy aimed at adapting the economic conditions of a long-term contractual relationship to a supervening and exceptional scenario, such as the pandemic. Miguel Ángel Apresa, director in the same Public and Regulatory area, also took part in the advice.
