Pontegadea wins UK Supreme Court ruling over Glasgow restaurant dispute

The UK Supreme Court has ruled in favor of Pontegadea, the investment group linked to Inditex founder Amancio Ortega, in a legal dispute regarding the historic Rogano restaurant in Glasgow.

The conflict involved Forthwell Limited, the company leasing the property, which sought compensation for economic losses following significant flooding in late 2020 and early 2021. The floods caused damage to the electrical installations, leaving the iconic art déco establishment closed for approximately six years.

The Supreme Court determined that Pontegadea is not liable for the claims. The ruling noted that Forthwell Limited did not operate the restaurant directly but through a subsidiary, Lynnet. The court emphasized that, as a general rule, only a contracting party can claim damages for breach of contract and can only recover losses they personally suffered. The court rejected Forthwell's attempt to use a legal precedent, describing their proposed interpretation as ‘too broad’ and ‘imprecise’.