Ostrava sues Amádeus Real over contractual penalties

Ostrava - Ostrava will file a lawsuit against the company Amádeus Real, which planned to build a shopping center in the city center. The city aims to recover nearly 7.5 million crowns through the courts. It is demanding payment of this year's installment of the land purchase price amounting to 4.15 million crowns, as well as a penalty of 1.3 million crowns for delay and an additional two million crowns for breaches of obligations associated with submitting a request for the issuance of a zoning decision. Mayor Petr Kajnar (ČSSD) stated this to journalists today. The city itself is facing a lawsuit from the developer, who is seeking 1.6 billion crowns in damages for lost investment.
    The company Amádeus Real withdrew from the purchase agreement for the land in Dr. Edvard Beneš Square last March, where a commercial complex was set to be built. This occurred after the central city district of Moravská Ostrava and Přívoz did not grant approval for the construction, which was eventually given to the company later. The city does not recognize the withdrawal from the contract and insists that the developer fulfill the agreement.
    "The original agreement with Amádeus Real was such that part of the purchase price would be paid upon signing the contract, while part was to be repaid in installments. Amádeus withdrew from the contract, but the city does not recognize the withdrawal and insists on compliance with the terms," Kajnar explained. The city first called on the company to pay the contractual penalties. However, the developer did not do so, according to Kajnar, prompting the city to choose to proceed through legal means.
    The total purchase price exceeded 83 million crowns. According to the lawsuit, the developer paid approximately 41.6 million crowns in 2009, which is about half of the purchase price that, per the contract, was to be paid within 30 days of its conclusion. In the subsequent three years, the agreed installment of 4.15 million crowns was paid.
    The second legal dispute over 1.6 billion crowns was initially supposed to be led by the central district of Moravská Ostrava and Přívoz according to the agreement with the city. However, the city ultimately had to take back the case after intervention from the Ministry of the Interior, which stated that the district was not authorized to represent the city in this legal dispute. Therefore, Ostrava is now seeking a law firm to represent it.
    "Of course, we will try to choose a firm that will guarantee the ability to defend this case, so we have approached reputable law firms that would be capable of winning this dispute. Without a doubt, it won't be easy," Kajnar said, who believes the city has a chance of success. The developer's statement could not be obtained by ČTK today. However, the company has consistently refrained from providing its opinions on the development of the entire dispute.