The Contentious-Administrative Court number 4 of Barcelona has annulled a 25,000 euro fine imposed on a large tenant for not offering social rent to a squatter in one of its dwellings before going to eviction. The fine had been imposed by the Catalan Consumer Agency of the Generalitat de Catalunya.

The Court considers that the occupant cannot be considered as a user or consumer, since there is neither a consumer relationship nor a declaration of the owner’s intention to remain in the dwelling, since there is no contract between the untitled occupant of the dwelling and its owner.

The judge ordered the reimbursement of the penalty plus legal interest from the date of payment until the date of full reimbursement by the defendant, and ordered the defendant to pay the costs.

Although there is room for appeal, the ruling could lead, as Thomás de Carranza Law Firm anticipated when the new Housing Law was approved, to the fall of many similar sanctions. In addition, the Constitutional Court has a pending appeal of unconstitutionality on which it has yet to rule.