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The Supreme Court

The Supreme Court (SC) has admitted the appeal for cassation presented by the Lawyer’s Office of the Autonomous Community of the Balearic Islands against the order of execution of the sentence which obliged the Autonomous Community to compensate with more than 63 million euros plus interest the promoters of the urbanisation of Muleta II, in Sóller.

Specifically, in March 2022, the Law Office of the Autonomous Community filed an appeal in cassation against the order of the Administrative Chamber of the High Court of Justice of the Balearic Islands upholding the execution of the judgement that validated the settlement agreement signed between the Government of the Balearic Islands and the company Birdie Son Vida SL.

The origin of the judicial conflict dates back to 2013 when the Government presided over by José Ramón Bauzá agreed with Birdie Son Vida SL the reclassification of Muleta II as urban land in exchange for withdrawing a legal dispute initiated by the company against the declassification of the previous Government.

According to the SC order, it must be assessed whether the compensation for the non-construction of the urbanisation must necessarily be carried out through the procedure of the state’s patrimonial responsibility as a legislator or whether it can be substantiated alternatively through the incident of execution foreseen in article 105.2 of Law 29/1998, of 13 July, regulating the contentious administrative jurisdiction, taking into consideration the differences that may exist, if applicable, between the procedure of the state’s patrimonial responsibility as a legislator and the reparation of the damages derived from the legal impossibility of execution.

The Govern de les Illes Balears considers that it does not have to pay this compensation, in the terms established in the order under appeal, and will therefore defend the interests of the public and fight against à la carte town planning in the Balearic Islands, exhausting all legally established avenues.