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Mogán City Council protects itself against a multi-million-dollar claim from Princess

Mogán City Council protects itself against a multi-million-dollar claim from Princess

GH MASPALOMAS24H Wednesday, April 30, 2025

A Princess hotel located in the tourist resort of Taurito, in Mogán, has filed a claim for damages worth €1.716.551 to the City Council for damages arising from the collapse of a three-ton tenique on September 27, 2022. The rock, which fell from a municipally owned slope, impacted part of its facilities, causing material damage and forcing the partial closure of the complex for more than two years. The municipal corporation, chaired by Onalia Bueno, rejected the request through a resolution proposal issued on January 16, 2025, according to Canarias 7. The file was sent to the Canary Islands Advisory Council, which issued a 3-page opinion on April 23. Although its report is not binding, it is mandatory in this type of procedure.

The stone, approximately one cubic meter in volume, affected entrances, hallways, and two rooms, but the hotel claims much greater damage: the closure of 20 rooms until November 13, 2024, when they could be reopened after work was carried out to reinforce the cliff. This inability to sell has been assessed as lost profits and forms the core of the claim the hotel filed in September 2023.

The City Council maintains that the hotel's claim does not sufficiently prove material damages, especially with regard to lost profits. It argues that the expert report provided by the company is based on the assumption of full occupancy, without taking into account actual demand, the annual accounts from previous years, or month-to-month occupancy rates. "The expert report, by itself, does not prove the actual and effective loss of profits," states the municipal document, which warns that the loss is presented as a mere possibility in a hypothetical situation of maximum occupancy.

The council also questions other items, such as a bill for relocating guests valued at €9.295, for which, it asserts, no evidence was provided proving that these guests were staying or would be staying in the rooms affected by the collapse. The Advisory Council, however, finds that the City Council acted with diligence by failing to provide contradictory reports refuting the hotel's expert report, which is why it considers the assessment of lost profits to be entirely valid. According to its opinion, "the company is entitled to compensation of €1.707.256," an amount that must be updated to the date the procedure concludes.

However, the regional body agrees with the City Council that there is no evidence to support other claims, such as the alleged relocation of guests. In this regard, the local administration's position has been partially supported, especially in its skepticism regarding the full extent of the alleged damage.

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