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States will look to recover legal costs from Fermain tenant

Having seemed to many to have ‘lost’ its court action against its tenant at Fermain Beach Cafe and racked up a six-figure legal bill in so doing, the States has said it intends to seek to recover its legal costs from tenant Belmiro de Freitas.

Fermain cafe tenant Belmiro de Freitas and his partner Manuela Walter were given a three-year stay of eviction last week
Fermain cafe tenant Belmiro de Freitas and his partner Manuela Walter were given a three-year stay of eviction last week / Guernsey Press

Many islanders would have seen the three-year stay of eviction agreed by the Royal Court as a victory for Mr de Freitas, but the States responded to last week’s case by claiming that it was successful, the court having granted an eviction order.

Policy & Resources vice-president Gavin St Pier said it would be seeking costs, ‘given that the court found in our favour’.

These costs had been revealed as £100,000 two months before the case came to court, and are expected to have risen considerably since.

States chief executive & head of the public service, Boley Smillie, maintained that the States had been right to try to secure best value for money for taxpayers from the property, and opening the cafe to tender and the subsequent eviction process had that aim.

‘It is not unusual for the States to go out to tender when a contract or lease comes to an end, as this provides a fair and transparent way of testing the market and ensuring taxpayers are getting the best deal possible,’ he said.

‘I recognise that the tender for the Fermain Cafe lease has prompted strong views in the community, and I understand why this is a sensitive matter.

‘As chief executive, I am ultimately responsible for ensuring that public assets are managed in a way that delivers lasting value for money for taxpayers and this is the focus here.’

Mr de Freitas has been the tenant of Fermain for more than 20 years.

The States went out to tender last year for the premises, and decided that he was unsuccessful.

But he has refused to budge.

The States awarded the tender to local company Pearl Oyster, which runs two cafes in town. Deputy St Pier added that discussions were ongoing with the company.

‘We hope that they will be willing to take over in 2028 and deliver the plans they submitted during the tender,’ he said.

‘We are disappointed at the length of time that this matter has been running, having begun in September 2024, well before we took office.

‘Having inherited the situation, we welcome the court’s granting of an eviction order, which was the purpose of our application, but we are now focused on the practical challenges presented by the length of the stay of eviction.’

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