The District Court in Prostějov will today begin hearing a lawsuit filed by the developer Manthellan, which is demanding CZK 320 million in compensation from Prostějov for not being able to build the Galerie Prostějov shopping centre in the town. The court hearing will start after the Prostějov City Council rejected Manthellan’s proposal for an amicable solution last year. The Galerie Prostějov project was prepared by a group of investors around businessman Richard Moravek, who built the Šantovka shopping centre in Olomouc.
In the lawsuit, Manthellan seeks compensation for CZK 320 million in damages allegedly incurred in connection with the costs incurred in preparing the Prostějov shopping centre project. Mayor František Jura (ANO) pointed out that the contracts between the city and the developer had been previously declared invalid by the court, so the city hall is in a good starting position in this dispute. According to the city’s lawyers, Manthellan has not yet proved that it has suffered the damage it is demanding to pay. They also say the claimed costs of preparing the project are highly questionable, as is the amount of lost profits.
The Prostějov gallery was to be built in the city centre on the site of the cultural and social centre. The shopping mall project failed to come to life after the town hall changed its mind in 2018 after consulting with lawyers about the validity of the 2010 agreement on the future contract, which covered the preparation of this business plan. The council’s position was upheld by the Court of Appeal in 2019, which upheld the invalidation of the contract with the developer. The investor subsequently filed an appeal to the Supreme Court, but failed.
In 2018, the City Hall filed a lawsuit to evict the land used by Manthellan in the city centre. The court then ruled that the lease agreement for the city land between the city hall and Manthellan, which planned to build a shopping centre on the plots, was also invalid.
Source: CTK
