One of the seemingly endless legal sagas surrounding property development has taken a further twist. The Balearic High Court has now ruled that the regional government should pay 297,407 euros to four individuals and a real-estate company for the 2008 declassification of the upper part of the El Vila urbanisation in Pollensa.
A total of 1.7 million euros compensation had been sought, and this related to the 2008 "urgent measures" for sustainable land development that were introduced by the PSOE-led government in 2008.
Two rulings by the court recognise the rights of owners to be compensated without having to justify certain costs by presenting invoices. But the court has decided that the method for calculating costs should not be based on valuations from 2008 but from 1983 when development started. A value of 47 euros per square metre has been fixed.
The Vila case is more or less identical to the declassification of the Cala Carbo in Cala San Vicente. It was covered by the same 2008 decree. Earlier this month the court ruled that the government will have to pay 1.8 million euros to four owners who had been seeking 28 million.
Various parts of Majorca were affected by the 2008 decree. These included, among others, Monport in Andratx, Son Real in Santa Margalida, Alcanada in Alcudia, La Muleta in Soller and El Vila and Cala Carbo. In 2013, the government was facing a total compensation claim of 703 million euros. At one point the courts seemed inclined to press much of this claim, so much so that the government was considering a reclassification of the land in order to allow it to be developed.
The regional attorney has confirmed that the government will not appeal the latest rulings, but the owners in El Vila are likely to. The Cala Carbo owners have already lodged their appeal.