States to seek costs after Fermain cafe court decision

The States will try and recoup its £100k+ legal costs following its eviction court battle with the tenants of the Fermain Beach Cafe. 

Deputy Gavin St Pier, Vice-President of Policy & Resources, said the Committee would “of course” apply for a cost award, which will be determined in a separate hearing, “given that the court found in our favour”.

But he said the future of the cafe remains unclear after Guernsey’s Royal Court granted the current tenants – Belmiro de Freitas and Manuela Walter – a three-year stay of eviction until 31 October 2028.

“Discussions are ongoing with the preferred bidder who won the tender. We hope that they will be willing to take over in 2028 and deliver the plans they submitted during the tender,” Deputy St Pier said.

“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.”

The States opened a competitive tender for the lease early last year and selected Pearl Oyster Ltd – which runs Coco and Lola in town – as the preferred bidder to take over the site after the current tenants’ 21 year stint.

The takeover was supposed to happen in November 2024, but Mr de Freitas and Ms Walter refused to move out, continued trading, and launched a legal challenge against the government’s decision.

It was revealed in July that legal costs for the case were around £100,000 with external lawyers used, following a freedom of information request from Deputy Mark Helyar.

Boley Smillie, the States’ Chief Executive & Head of the Public Service, accepted that there has been public concern but said he must act to protect public assets. 

“I recognise that the tender for the Fermain Café lease has prompted strong views in the community, and I understand why this is a sensitive matter,” he said. 

“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.

“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.”

Deputy Gavin St Pier added: “We are disappointed at the length of time that this matter has been running, having begun in September 2024, well before we took office.”

The States did not answer questions on the final costs of the case, if compensation could be paid to the tender winner, or if there is a risk of additional litigation.