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New legal success: Favorable Judgment Against Public Health Agency for Nonpayment of Fee

Legal victory against abuse by public institutions

State institutions charged with exercising governmental authority have an inescapable duty to strictly observe the laws and protect the rights of citizens. Nevertheless, it is common to encounter situations in which the public administration engages in arbitrary and abusive actions to evade its responsibilities.

Today, we are pleased to announce another important legal triumph that corrects these unfair practices in favor of our client.

Significance of the ruling

This ruling sets an important precedent in the defense of property rights, as it confirms that state institutions cannot abuse their position of superiority over the citizen. On the contrary, they must strictly comply with the obligations established by the legal system and the instruments to which they subscribe.

On the other hand, it is crucial to emphasize that the Court found the negligence of the public officials in charge of the contractual process and ordered the initiation of the corresponding repetitive actions for the improper withholding of a contractor's funds. 

Key aspects of the case

Our client signed a service contract with a public hospital in August 2015. Despite meticulously fulfilling the terms of the service contract, the hospital unjustifiably refused to make the agreed payments (breach of contract).

Strategy and development of the litigation

Throughout the litigation, the hospital attempted to confuse the court in an attempt to evade its financial responsibility. Faced with this challenge, our legal team developed and executed a strategy based on irrefutable evidence and solid arguments. This approach allowed us to demonstrate to the TCA both the violation of our client's rights and the improper withholding of funds by the hospital.

Three significant achievements

1. Court Accepts Case and Orders Compensation

  • The court accepted our claim and ordered the hospital to pay $34,001.00, plus interest. This ruling represents not only a financial victory, but also a vindication of our client's rights.

2. Judicial Condemnation of the Hospital's Conduct

  • The court severely criticized the conduct of the hospital officials, citing their "negligence, laxity and irresponsibility. This comment underscores the seriousness of the hospital's actions and confirms the need for our legal intervention.

Court quote:

"4.2.- It is evident that, from the date of the issuance of the Final Single Reception Certificate, the Enrique Garcés Hospital, through its representatives, has not only acted negligently, but also with a lack of diligence, especially since it did not participate in the amicable resolution of the dispute at the Mediation Center of the Attorney General's Office. The actions of the officials on duty at the Enrique Garcés Hospital demonstrate a level of irresponsibility that, given the time that has elapsed, results in a deficient administrative performance, to say the least".

3. Responsibility of Officials and Corrective Actions Ordered by the Court

In addition to awarding substantial monetary relief, the court directly addressed the improper conduct of the hospital officials, finding them responsible for the illegal withholding of payments and ordering decisive action to remedy those actions:

Court quote:

"Considering the negligent action of the officials of the Enrique Garcés Hospital, it is obvious that there is responsibility on the part of the officials on duty....Therefore, it is essential that the competent authority initiate repetitive actions against all the officials...responsible for the retention of the values owed, namely the General Managers and Directors or Financial Chiefs.... ... for the amount that the Hospital Enrique Garcés must pay in the form of interest derived from the delay in the payment of the balance established in the certificate of receipt of delivery, without prejudice to the maximum authority to apply what is provided in article 101 of the LOSNCP for the illegal retention".

Are you facing similar challenges with government agencies in Ecuador?

If you or your organization is dealing with situations where you are facing arbitrary or unreasonable withholding of payments by government entities, you are not alone. Our legal team has extensive experience challenging these practices and recovering what is rightfully ours.

Contact our law firm for:

  1. Specialized advice: Get a detailed analysis of your specific situation and explore your legal options.

  2. Effective legal defense strategies: Allow our team to develop a plan of action based on irrefutable evidence and sound reasoning, similar to how we have achieved significant victories in past cases.

  3. Protect your rights: Ensure that your rights are vigorously defended against any public entity that has failed to meet its obligations.

  4. Recovering funds: We will work to recover any improperly withheld payments and seek compensation for the damages caused by these actions.

Our experience, your success

With a proven record of success, as in this case, we demonstrate that it is possible to right wrongs and achieve favorable results. We are here to ensure that the law is applied fairly and effectively, protecting your interests at all times.

Judge ruling
Favorable ruling in case of non-payment by the public institution


aviso legal

Legal disclaimer

The content of this blog is provided for informational and educational purposes only and should not be considered legal advice. Regulations in Ecuador are subject to changes and updates that may affect the applicability and accuracy of the content published here. We do not guarantee that the information presented is accurate, complete or current at the time of reading. Therefore, past postings should not be construed as necessarily reflecting current regulations. We strongly recommend that you consult with our qualified attorneys for specific and personalized advice.

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