Public Administration Liability For Damages to A Company That Obtained A Municipal License to Construct Homes And Commercial Real Estate, And Started Construction. Liability Incurred From Interim Measure Of Protection Suspending Construction

13 February 2009

The Supreme Court established liability in their ruling because two public administrations debated the legality of the license and decided to apply a precautionary measure suspending same and the construction which was already underway.

The City Council had issued the construction license; construction had already started – with the accompanying economic investment-, and the state authorities appealed a municipal agreement, petitioning for the suspension of the municipal license – and its validity.

The appeal was overturned as the case involved urban land zoned for construction. When the State authorities’ appeal was overturned, it was appealed at the Supreme Court level and the appellant requested the continuance of the precautionary measure which, finally, incurred damages and liability for the administration.

For further information, please contact Alex Ensesa Casulleras: aensesa@mmmm.es