Leroy Merlin must pay €6,5 million compensation for not coming to Almería city

Leroy Merlin has been ordered to pay €6.5 million euros in compensation to a builder in Almería for breach of contract, after it decided against setting up a new superstore in the city.

Bogaris Retail SL,, the company behind the Torrecardenas retail park, had arranged in 2007 that Leroy would be setting up there; the company reserved 12,500 metres for their superstore and gave a cheque for €600,000. The licenses had to be in place by 2011.

The usual delays dogged the obtaining of the licenses, and Leroy started to look at Roquetas instead (where they eventually opened a large store). Although the licenses were granted just before the deadline, Leroy claimed the licenses weren’t sufficient to start building (the illegal homes effect again), said the contract was invalid and went to Roquetas.

Bogaris sued for €13,5 million euros compensation, but has been awarded just €6,5 million, which is still a nice amount. The Judge said the licenses were valid, deemed breach of contract to have taken place and ordered costs. He didn’t award the full amount requested because Bogaris had never started construction.


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