A major court ruling has delivered a dramatic twist in the long-running controversy over the road maintenance contract in Orihuela Costa, with judges concluding the contractor did not breach its agreement with the Town Hall.
The High Court of Justice of the Valencian Community (TSJ) has partially upheld an appeal by construction firm Construcciones Zaplana Caselles, overturning key parts of an earlier ruling that had accused the company of failing to meet contract conditions.
At the centre of the dispute was a 1,174-square-metre depot that the company promised in its winning bid for the road maintenance contract. The facility, planned for Lomas de Cabo Roig, included storage space for vehicles and machinery as well as offices, changing rooms and toilets. That pledge proved decisive when the contract was awarded, giving the company victory by a razor-thin margin of just 0.72 points over its closest rival.
However, when the service eventually began, the company used a different site in Playa Flamenca instead of the originally proposed warehouse. The change sparked controversy inside the town hall. At the time, the councillor responsible for infrastructure, Ángel Noguera, refused to authorise invoice payments, arguing the machinery was being stored outdoors and exposed to possible theft or deterioration.
The disagreement even triggered internal clashes within the municipal government, with some officials insisting the bills should still be paid because the service itself was being delivered.
Now the regional high court has ruled that the Town Hall cannot claim a breach of contract years later. Judges pointed out that the municipality already knew the warehouse had not been provided when the contract was awarded and could have chosen another bidder at that stage.
The court also highlighted that municipal technicians approved the launch of the service, supervised the work and authorised payments, confirming that the road maintenance was carried out under the agreed terms.
For that reason, the judges concluded that declaring a breach afterwards would violate the legal principle of “legitimate expectation.”
Despite the ruling, the political battle continues. The party Ciudadanos has filed complaints alleging fraud, prevarication and misuse of public funds, claiming the company received more than €3.5 million over five years. A court in Orihuela has opened preliminary investigations, although the current municipal government insists the case will ultimately be dismissed.
