Court orders FSWS to pay €53,000

The Foundation for Social Welfare Services (FSWS) was ordered to pay €53,000 to Jonathan Borg after the Foundation failed to honour an 11-year lease agreement.

On 5 February 2007, Borg leased a maisonette in Triq Braille, Santa Venera, to the foundation for 11 years against a total rent fee of €97,537 (Lm41,873). Rent was payable every six months.

However on 26 January 2010, the FSWS informed the lessor that it was vacating the premises. In three years Borg had been paid €20,405.31 in rental fees.

The foundation also deposited at court the keys of the maisonette. Feeling aggravated by FSWS's actions, Borg filed against the foundation claiming the agreement had been for 11-years and demanded payment of €77,132 for the outstanding amount of rental fees until March 2018.

FSWS argued Borg's actions led the Foundation to vacate the premises. The lessor had applied and received a development application to build further storeys over the maisonette.

Moreover, there was a constant flow of people going through the building to conduct evaluations as the premises were repeatedly the subject of a sale by auction.

The foundation claimed that the building registered as a residence was rented to Agenzja Sedqa as a commercial property yet no agreement was reached with MEPA for the change of use. MEPA in turn issued an enforcement notice ordering the cessation of operations from the premises.

The court held that FSWS was aware the premises were residential, hence there could be the need for a change of use application. "

The Foundation made a half hearted attempt to regularise its position and allowed their MEPA application to lapse. Moreover no evidence was exhibited, proving the decision of FSWS to vacate the premises was justified," the court said.

Having considered that the term of lease should have been for 10-years rather than 11, Mr Justice Mark Chetcuti upheld the claimant's request for the outstanding rental fees less that of the final year.

Judge Chetcuti ordered FSWS to pay Borg the sum of €53,802.54 covering rental feel for the term previously agreed upon.