The owner of a Marsa property on a forced commercial lease for the past 60 years was awarded over €1 million in damages payable by the State Advocate in another in a long line of judgments declaring that the current legislative mechanism breached the landlord’s fundamental property rights. 

The case concerned a property leased to Briar Pipeworks Ltd by the predecessor in title of Gabriella Fusco, who filed a constitutional application two years ago claiming that the fact that she could not regain possession nor increase the rent to reflect the property’s true market value breached her fundamental right as safeguarded by the European Convention. 

The property had belonged to the applicant’s grandmother and used to be rented at Lm213.33 a year. The rent today stood at €1,397.68 per annum. 

Under the current legislative framework, the landlord could not reclaim possession of the property but was bound to renew the lease. 

Nor could the Rent Regulation Board order an increase in rent beyond a maximum threshold which fell far short of the rent the property would generate on the open market. 

A court-appointed technical expert reported that between 1987 and 2021, the total rent on the open market would have exceeded €2 million. 

There was no “fair balance” between the general interests and the fundamental human rights of the individual, observed the First Hall, Civil Court in its constitutional jurisdiction. 

“The legislative mechanism does not provide adequate safeguards in favour of the landlord who is forced to shoulder the disproportionate and unjust burden,” observed Madam Justice Miriam Hayman.

The applicant’s claim that the lease breached her fundamental right to peaceful enjoyment of property was justified.

After taking note of various factors, including the legitimate aim of the challenged legislation and failure to seek legal action by the applicant and her predecessors in title, the court calculated pecuniary damages to the tune of €1,059,948.128.

The property was in a very bad state of maintenance and was structurally in a dangerous state. 

The court also awarded an additional €10,000 in non-pecuniary damages while declaring that the tenant could no longer rely on the law to protect its hold on the property. All damages are payable by the State Advocate who was held responsible for the breach.

Lawyers Edward DeBono and Nicholas DeBono assisted the applicant.