A consultancy company is suing two local companies forming part of the Lidl group for over €1 million in brokerage fees it claims to be owed in respect of the acquisition of property, including several Scotts supermarket outlets.
The civil lawsuit was filed by Replace Consulting Limited against LIDL Malta Limited and LIDL Immobiliare Malta Limited after previous attempts to settle the fees due, failed.
The Maltese-registered company had first been approached by Lidl Immobiliare to assist with sourcing relevant commercial information for the purpose of purchasing shares or immovable property belonging to Scotts.
An agreement was signed with the consultancy company in February 2019 and Replace Consulting set about acquiring the requested information.
Three months later, Lidl Malta Limited also declared its interest in the property acquisition and engaged the consultancy company to assist in all activities related to the deal.
Brokerage fees were fixed at a 5% rate on the purchase price, payable on final transfer of the property and a letter of intent was also issued in respect of the projected acquisition.
Replace Consulting Limited was actively involved in the business negotiations, leading up to a promise of sale that was signed in October 2020 in terms of which Lidl Immobiliare Malta Ltd was to acquire premises in Attard, Burmarrad and Żabbar.
It was also to take over the lease of land in Burmarrad and other leased property in Sliema.
Subsequently, the Malta Competition and Consumer Affairs Authority (MCCA) was informed of the sale agreement in terms of the Competition Act and other related laws.
Meanwhile, Replace Consulting Ltd continued with its active role in the negotiations so that the deal could be wrapped up.
Following discussions with the MCCA, the parties agreed to drop the sale of the Żabbar property, but continued with the rest.
The purchase was approved by the board of directors of Lidl Immobiliare Malta Ltd in June 2021, while a similar resolution was registered by the board of directors of each of the vendor companies, namely Said Investments and Scotts Ltd.
However, after the successful conclusion of the deal and the acquisition of property by Lidl Immobiliare Malta Ltd, Lidl Malta Ltd failed to honour its obligations towards the broker.
Calls to settle the fees due, also by means of a judicial letter in 2022, failed, leaving the broker with no option but to take the matter to court by filing a civil action to recover its commission totalling €1,250,000.
The applicant requested the First Hall, Civil Court to declare that it had fulfilled the services agreed upon, thus facilitating the property deal in respect of which it was owed the commission as agreed upon.
The applicant also filed a request to obtain a precautionary garnishee order to secure its claim.
A first hearing of the case is scheduled next month.
Lawyers Mario de Marco and Maria Margo Zammit Fiorentino are assisting the applicant.