Luxury Villa Construction in Tenerife Derailed by Sentenced Company

The Barcelona Provincial Court has ruled a company accountable for supplying substandard mortar and an insurance firm to compensate a construction company with 65,300 Euros. The construction company had plans to build 30 chalets of 500 square metres each in Tenerife, with an estimated revenue of 20 million Euros.

As a result, various other projects by the construction company in different locations, such as 3,000 houses in Galicia, 600 in Saudi Arabia, and 1,500 in Algeria, were also thwarted due to the poor quality material.

Despite this, the convicted company, initially sought nearly 600,000 Euros, with 101,500 Euros for damages and 479,000 Euros as loss of profits.

The plaintiff contracted a project in Argentona, Barcelona in 2018, where they were provided with almost 9.6 tons of mortar, later exchanged for another due to quality issues.

During the work, it was discovered that the supplied material had irregularities due to its inadequate quality.

The producers verbally admitted the fault, blaming an incorrect mix during production. Despite attempts to rectify the defects, they reappeared.

Eventually, the convicted company denied any deficiencies, contradicting test results.

Regarding Tenerife, the company planned to work with a new construction system and a visit to the home in Argentona was a condition. Upon observing the damage, they abandoned the project on the island.

The convicted company argued that the term “loss of profits” should be replaced with “hopes of fortune,” based on previous legal cases. They argued the lack of evidence for their expectations being frustrated in this instance.

The plaintiff claimed to have offered a construction system based on industrialised and automated production units. They provided technology, supervised assembly, and sold complete units.

Collaborating with a technological partner, a Swedish-Swiss multinational in Zurich, specialising in robotics, they aimed to deliver an innovative construction system.

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