Harbour developers sue Beachaven, Transport Authority for damages over disputed concession

The company behind stalled plans to build a mooring area in Xemxija has filed a case against Malta’s transport authorities and the owners of the Beachaven resort, who had filed an injunction against the development, demanding they stop carrying out “illegal operations” and requesting damages.

The dispute surrounding the Xemxija resort started heating up last month after the resort’s owners, Godwin and Jeanette Cutajar had filed the injunction just before works were due to start in March, bringing the project to a sudden halt. The injunction halted works established under the Local Notice to Mariners No 16 of 2021 and any other ancillary works regarding the management of the Organised Mooring Area and associated fairway for the mooring of small craft in the Xemxija mooring area. 

The Cutajars argued that they had been operating the Beachhaven resort for the past 55 years, offering commercial services relating to nautical sport and mooring of boats outside their premises. In 2009, the transport authority had issued a public call for proposals for the management and berthing of yachts in Xemxija and Salina despite the Cutajars having title over the land up till 2055.

But in an application filed before the First Hall of the Civil Court on Wednesday morning, the company behind the development, Harbour Management Limited, countered the couple’s claims.

Harbour Management Limited referred to a concession agreement it entered into with the authorities on 22 February 2021, based on the 2009 request for proposals.

The warrant of prohibitory injunction filed by the Cutajars was “solely intended to prejudice the rights of the company and cause damages…which the company wants to be compensated,” said the company.

It argued that the Cutajars had put a bid in the 2009 RfP and despite having their offer rejected, did not object to the way the offer or the area to be conceded.

The company stated that in the acts of the prohibitory injunction there is a declaration by the Authority for Transport in Malta which established “in the most clear manner, that the concession under the agreement signed on 22 February 2021 and the area where the Cutajars operate illegally are separate and independent … and in no way impact each other.”

The fact that the Authority was doing nothing to stop the Cutajars from carrying out unregulated economic activity meant that Harbour Management Ltd was going to continue to suffer damages and prejudice, it said.

The company demanded compensation for the “prejudice and damages it was suffering through the actions of the two defendants.”

It also demanded that the Authority revoke and cancel any temporary permit issued over the area in question and see that no commercial activity be allowed to take place there within 48 hours.

The harbour operator also demanded that the Cutajars cease and desist from carrying out any form of maritime economic activity in the area arguing that it had been conceded to the plaintiff company, holding them responsible for past and future damages.

Lawyers Joseph Sammut and Natalia Camilleri signed the application.

In separate proceedings last month, the Authority also filed a judicial letter, warning the couple's son Simon Cutajar to withdraw a statement he made on Facebook, accusing it of "greed, corruption and bullying" in connection with the Xemxija project.

READ MORE: Beachaven files injunction against proposed Xemxija mooring area