Justice Upholds Telde City Council in Street Cleaning Dispute

A court in Las Palmas de Gran Canaria rejects the concessionaire's 5.3 million euro claim for machinery rental.

Generic image of a judge's gavel on legal documents in a courtroom.
IA

Generic image of a judge's gavel on legal documents in a courtroom.

The Administrative Litigation Court No. 1 of Las Palmas de Gran Canaria has dismissed a 5.3 million euro claim filed by the temporary union of companies (UTE) responsible for street cleaning in Telde, supporting the City Council's position in this prolonged dispute.

The ruling, issued on April 30, 2026, declares the resolution of the Telde City Council's Local Government Board from June 13, 2024, to be in accordance with the law. This decision rejects the concessionaire's request for compensation due to alleged unjust enrichment by the council, plus corresponding legal interest.
The company argued that, from the effective start of the contract between January 2020 and October 2023, it had to bear significant additional costs for renting the necessary machinery and vehicles to provide the service. According to their defense, when they took over municipal cleaning, no material resources were available as the previous contractor had removed its equipment.

Public procurement does not automatically cover all increased costs that a contracting company may incur during the execution of a contract.

However, the court rejected this argument, concluding that these expenses were the responsibility of the concessionaire itself. The judicial resolution emphasizes that both the contract and the administrative clauses and technical specifications clearly stipulated that the concessionaire was required to provide the necessary material means for the service.
The ruling also dismisses the existence of unjust enrichment by the Telde City Council, considering that the obligation to provide the resources contractually fell on the company. Furthermore, it states that the cost of machinery rental cannot be included in price revisions or justify economic rebalancing, as it falls within the principle of 'risk and venture' for the contractor.
This litigation is part of a long history of judicial conflicts surrounding Telde's cleaning contract for over a decade. The UTE was initially awarded the contract in 2009, but it was not formalized until November 2019, with service commencing in February 2020, after years of legal disputes.