VSB loses Supreme Court challenge over Victoria Stadium bar tenancy

The Supreme Court has dismissed a constitutional challenge brought by VSB Limited, operators of the bar El Murga, against the Government over its tenancy at the Victoria Stadium.

The dispute arose after the Governor issued a certificate in December 2024 under section 66 of the Landlord and Tenant Act, ahead of the Stadium re-development.

The provision in the Landlord and Tenant Act allows the early termination of business tenancies in the public interest, where redevelopment is required.

The move was aimed at enabling the Gibraltar Football Association to redevelop the site into a UEFA Category 4 national stadium.

VSB, through their lawyers, Charles and Nicholas Gomez, argued that section 66 was unconstitutional, claiming it gave the Governor sweeping powers without judicial oversight, created institutional bias, and failed to provide adequate compensation compared to tenants of private landlords.

The company also questioned whether the Government held sufficient ownership of the site, pointing to agreements with the Gibraltar Football Association that it said amounted to a lease.

The case was defended by Lord Pannick KC and Jason Pobjoy KC, who argued that judicial review and constitutional motions provided sufficient court oversight, and that the agreements with the GFA created only licences, not leases.

Chief Justice Anthony Dudley agreed with the Government.

He ruled that judicial review satisfies constitutional requirements for access to the courts, and that the Governor’s role does not breach the standard of impartiality, given the ultimate jurisdiction of the courts.

On the question of ownership, he said agreements with the GFA did not transfer exclusive possession, meaning the Government remained landlord and entitled to act under section 66.

VSB’s claim was dismissed.