Issue link: https://maltatoday.uberflip.com/i/1530259
8 maltatoday | SUNDAY • 8 DECEMBER 2024 OPINION & LAW Law Report IN a judgment handed down on 20 Novem- ber 2024, the Court of Appeal (Inferior Ju- risdiction) presided over by Judge Lawrence Mintoff confirmed the decision of the Small Claims Tribunal in Yog. Art Catering Limit- ed vs Gismond and Jacqueline Attard. This case, while seemingly a simple dispute on payment, delves into issues of jurisdiction, prescriptive periods, and the interplay be- tween specialised tribunals and general civil remedies under Maltese law. The heart of the dispute was a balance of €3,603.65 from a €16,000 deposit paid under a lease agreement for a property in St Julian's. In 2014, Yog. Art Catering Limited rented a commercial property from Gismond and Jacqueline Attard. The lease lasted just under a year, ending in February 2015. At the start of the lease, Yog. Art paid a hefty €16,000 de- posit. However, upon the termination of the lease, a dispute emerged regarding unpaid rent and utility arrears, leading to proceed- ings before the Rent Regulation Board (RRB). The RRB's decision in January 2022 was clear: Yog. Art owed €9,720 in unpaid rent and €2,676.35 for utilities. This amount was offset against the deposit, leaving a balance of €3,603.65. Despite this judgment which was also confirmed on appeal in November 2022, the remaining balance was never refunded to Yog. Art, prompting them to file a claim with the Small Claims Tribunal in March 2023. The company argued this was unjus- tified enrichment by the lessors. The Attards replied by contesting the jurisdiction of the Small Claims Tribunal while also arguing that the action was time-barred by the lapse of five years, which is the prescriptive peri- od established in the Maltese Civil Code for payment of rent. The appellants argued that matters related to lease agreements, including disputes over deposits, fall exclusively within the RRB's purview. This assertion drew on Article 1525 of the Civil Code, which outlines the Board's jurisdiction over leases of urban properties, and Article 16(4) of Chapter 69, emphasising the Board's jurisdiction over any dispute re- lating to lease. However, the Small Claims Tribunal re- jected this argument, asserting that the claim was not a lease dispute per se but rather one rooted in unjust enrichment under Article 1028 of the Civil Code. The Court of Appeal upheld the Tribunal's reasoning. The court clarified that the Board's jurisdiction extends only to disputes explicitly tied to leases, such as rent arrears or maintenance claims. Claims of unjust enrichment, while poten- tially connected to a lease agreement, fall un- der general civil law and therefore within the Tribunal's jurisdiction. This nuanced dis- tinction highlights that the precise framing of a claim determines the competent adju- dicating body. By crafting their claim as one of unjust enrichment rather than a lease-re- lated dispute, Yog. Art ensured access to the Tribunal. The plea that the action was time-barred was equally contentious. Under Article 2156(c) of the Civil Code, actions for pay- ment of rent or related amounts prescribe after five years. The Attards contended that this period began in February 2015, when the lease terminated. If true, Yog. Art's claim, filed in March 2023, would have indeed been time-barred. The Tribunal and Court of Appeal disa- greed, applying the principle that prescrip- tion does not run against one who is unable to act. The Court of Appeal held that the pre- scriptive period did not commence until the Court of Appeal's judgment in November 2022 which confirmed the RRB's judgment. Before that ruling, Yog. Art could not defini- tively ascertain its entitlement to the deposit balance. The Court of Appeal confirmed that the Small Claims Tribunal was correct in assert- ing jurisdiction and rejecting the prescrip- tion plea. The judgment clarifies the distinc- tion between lease-related disputes under the Rent Regulation Board's jurisdiction and broader civil claims, such as unjust en- richment. By doing so, the Court of Appeal reinforced that the case should be resolved on its merits and guided by principles of sub- stantive justice. Lawyer Ian Barbara represented Yog. Art Catering Limited. Unjustified enrichment cases should be heard by the ordinary court, Appeals Court rules IAN BARBARA Mifsud & Mifsud Advocates The energy to power a sustainable Malta DECEMBER 5th 2024 marked an impor- tant milestone in Malta's energy landscape, one where we stepped ambitiously towards a cleaner, greener tomorrow. We an- nounced the opening phase of the procure- ment process that will lead Malta to having, for the first time, wind energy supplied to its grid. This project, aimed to increase the indigenous renewable energy portion in Malta's energy mix, fits perfectly with our vision for the sector and will contribute to the government's aim of achieving a car- bon-neutral economy by 2050. When in 2021, the Ministry of Finance issued a pre-market consultation to gauge interest in economic activities in Malta's Exclusive Economic Zone, the market re- sponded with considerable interest for en- ergy projects. Yet we did not want to sac- rifice close natural reefs, touristic zones or areas of special conservation. Every govern- ment with vision and responsibility must think of tomorrow as much as today. To lessen the impact on the community, we boldly decided to deploy energy infra- structure beyond 12nm to mitigate visual impacts and noise. Through the consulta- tion processes we are comforted that the public has widely accepted this decision. The Energy and Water Agency conducted a consultation process for Malta's first na- tional policy on offshore renewable energy. This policy selected six suitable zones for offshore RES development and was subject- ed to a strategic environmental assessment (SEA). At the same time we began assess- ing which technology was the most suita- ble and mature, and which of these zones would yield the best energy results. Two zones within one area defined in the SEA have been selected as potential areas for RES generation. After decades of discussion on wind energy, a concrete step can kick- start the process to diversify the renewable energy supply, which has so far only been generated from photovoltaics. But policy was not the only aspect we started from scratch. Legislative updates were needed to proceed with such projects. The Continental Shelf Department ensured that projects beyond the territorial waters, in areas to be declared as Malta's Exclusive Economic Zones, could be implemented. The PQQ will provide two available sites for companies in this sector interested in designing a 300MW floating offshore wind generation plant at either of these locations. The project aims to stabilise the energy price as its costs will not be influenced by the fluctuation of fossil fuel prices or exter- nal factors that impact energy costs. This is just one link in a chain of projects the Ministry of Energy is working on to ad- dress climate neutrality. We are working on the second interconnector which will double the interconnection capacity be- tween Malta and the European network. This will provide the flexibility needed to make up for the intermittency of renew- ables and will enable us to proceed with large-scale RES projects such as this one. Until now, in Malta, energy is generated and consumed simultaneously – there- fore, balancing demand with supply is done without any buffer. To continue in- creasing flexibility in our energy system, we are working on Battery Energy Storage Systems (BESS) projects so that for the first time, energy can be stored and later used at different times. Just last week, we issued a tender for the first two BESS plants, which will be able to store up to 40MW of energy for up to eight hours. We are also working to increase photo- voltaics. This government is committed to incentivise more solar energy use. In re- cent years, we have increased from 15MW in 2012 to 245MW this year, and we will increase it further. We want to produce cleaner energy so that we can continue to reduce emissions in this sector. We are al- so investigating the possibility of turning waste into energy. We are determined to succeed. With today's step, those following devel- opments in this sector will see Malta as a country that does not give up despite its small size. We have challenging targets, but we are ambitious and have the necessary zeal and courage to turn today's challenges into tomorrow's opportunities. We want to leave a better place for the younger generation towards whom we owe responsibilities. This is our vision; a vision for a brighter, more sustainable future. One that not only meets our energy needs but creates lasting, positive change. Miriam Dalli is energy minister and Ismail D'Amato is CEO Interconnect Malta Miriam Dalli & Ismail D'Amato