The September 2011 decision ordered the construction company and the architect to pay the damages and fines agreed on in the contract to FERRERE's client, J. Rivero. The construction company and the architect filed an appeal on October 3.
The client set up in Uruguay to invest in a luxury construction project in one of the most high-end areas of Montevideo.
A building with state-of-the-art design, quality facilities and elegant finishings was to be built near the coast and close to the World Trade Center Montevideo. Due to its excellent location, French and Brazilian capitals also supported this project.
Differences arose between the parties during execution of the project, regarding construction of the building. The finishings were not built as planned and several construction flaws were found. In view of this, FERRERE’s client decided to withhold payments to the construction company until the building was finished as planned.
In October 2009 the construction company filed a claim to terminate the contract and collect the agreed fine.
FERRERE’s client in turn filed a counterclaim against the construction company and the directing architect for damages and the fine established and petitioned for an expert opinion to certify the building flaws.
The decision ruled against the construction company and the directing architect. The court was emphatic when describing the differences between the plans and the building's actual conditions. Furthermore, the court sustained that the architect in charge had assumed the commitment of delivering an excellent building to J. Rivero, despite not having entered into an agreement with him. Fernando Gómez, part of the Litigation Department team that worked on this case, said: “In the current scenario of the real estate boom in Uruguay, this decision sheds light on the responsibilities of the different parties involved in a construction project.”