The Provincial Court of the Balearic Islands has upheld the termination of the contracts covering a commercial premises at Marina Botafoch in Ibiza and ordered Golden Moda Actividades SL to return the unit and pay €4,276.45 in outstanding property-related expenses.

The ruling, dated July 27, 2026, rejected the company's appeal against a 2019 judgment from Ibiza's Court of First Instance No. 4.

Dispute Began With a 2012 Agreement

The case concerns commercial premises number 116-A at the Puerto Deportivo Marina Botafoch.

The original right-of-use agreement was signed on January 5, 2012, between the holder of the right of use and another party. On March 20 of the same year, that right was transferred to Golden Moda Actividades, which assumed the contractual obligations of the previous holder.

Unpaid Expenses From 2015

According to the court proceedings, Golden Moda stopped paying expenses associated with the premises in February 2015.

The outstanding costs included water, electricity and community charges and eventually reached €4,276.45.

The case also involved unpaid rent from the first months of 2018, amounting to €3,982.40. Those rental payments were subsequently made after the legal proceedings had begun.

Case Went to Court in 2018

The holder of the right of use brought the case to court in April 2018 after repeated attempts to recover the outstanding amounts.

The lawsuit also raised concerns about the condition and use of the premises, including the appearance of an “For Rent” sign and an alleged attempt to sublet the unit without authorisation.

Those circumstances formed part of the dispute examined by the court.

First Judgment in 2019

On July 31, 2019, Ibiza's Court of First Instance No. 4 ruled in favour of the claimant.

The court declared both the original 2012 agreement and the subsequent transfer terminated because of what it considered serious contractual breaches by Golden Moda.

It ordered the company to hand back the premises, with the possibility of eviction proceedings if the unit was not voluntarily vacated.

The court also rejected a counterclaim from Golden Moda seeking recognition of its position as the operator of the premises before the port authorities.

Company Appealed Over Payment Figure

Golden Moda subsequently appealed.

One of its arguments concerned a discrepancy in the 2019 judgment, which referred to €4,726.45 in one part of the ruling instead of the €4,276.45 actually claimed.

The Provincial Court concluded that the difference was a clear material error in the drafting of the judgment rather than an improper additional award.

It corrected the amount to €4,276.45.

Court Upholds Responsibility for Expenses

The Provincial Court also considered who was responsible for the costs associated with the premises.

The judges referred to an earlier 2016 decision involving the same parties, which had established that the person operating the premises was responsible for those expenses even when the bills remained issued in the name of the holder of the right of use.

The court therefore upheld the outstanding €4,276.45 claim.

Counterclaim Rejected

Golden Moda had also sought recognition of its position as the operator of the premises in relation to the port.

The Provincial Court rejected that request.

In its reasoning, the court applied the contractual principle that a party that has failed to fulfil its own obligations cannot demand corresponding performance from the other party.

Because the company's own contractual obligations had not been met, its counterclaim could not succeed.

Late Payment Did Not Avoid Legal Costs

The court also addressed the fact that the outstanding rent for the first months of 2018 had eventually been paid.

Those payments were made after the legal action had been filed.

The Provincial Court ruled that this did not eliminate the consequences regarding the costs of the first-instance proceedings, because the debt existed when the lawsuit was brought.

Golden Moda was therefore also ordered to pay the costs of the first instance.

Nearly Eight Years From Lawsuit to Appeal Decision

Although the underlying contractual relationship dates back to 2012, the court proceedings began in April 2018.

The first-instance judgment followed in July 2019, while the Provincial Court issued its appeal ruling on July 27, 2026.

The dispute has therefore passed through two judicial instances over several years, rather than constituting a continuous 13-year court case.

What the 2026 Ruling Means

The latest ruling leaves the termination of the two agreements in place and requires Golden Moda Actividades to return commercial premises 116-A at Marina Botafoch.

The company must also pay €4,276.45 relating to the outstanding property expenses, together with the costs ordered by the court.

The ruling resolves the appeal against the 2019 first-instance judgment.

Marina Botafoch Commercial Dispute

The case illustrates how a dispute over a commercial premises can continue for years when contractual obligations, outstanding expenses and the legal right to operate the premises are contested.

For the Marina Botafoch unit at the centre of the case, the latest judicial decision confirms the termination of the agreements and the obligation to return the premises.

The Provincial Court's ruling is dated July 27, 2026.