Court orders Steward Malta to pay €160,000 for unpaid hospital services

A court has ordered Steward Malta to pay more than €159,000 in unpaid fees for services provided at Gozo General Hospital and Karen Grech Hospital.

Judge Mark Simiana ruled in favour of Signal 8 Security Services Malta Limited, ordering Steward Malta to pay the company €159,388 for a range of unpaid services carried out during the final months of Steward’s management of the hospitals.

Signal 8 had provided not only security services, but also clerical staff, assistant storekeepers and fire marshals at the two state hospitals.

The court heard how the company had been left chasing arrears dating back to early 2023.

Steward had failed to settle €133,891 for services at Gozo General Hospital and a further €25,497 for work carried out at Karen Grech Hospital.

Signal 8 had also filed a precautionary warrant of seizure against the healthcare company.

Steward’s defence

Steward attempted to distance itself from part of the debt, particularly in relation to clerical services.

The company claimed these services fell under the responsibility of the Ministry for Health and the Central Procurement and Supplies Unit (CPSU).

It insisted that it merely acted as an intermediary that paid Signal 8 using government funds.

Steward further argued that because the government had allegedly failed to provide sufficient funding, it could not be held liable for the unpaid invoices.

However, the court dismissed the argument that Steward was merely a “middleman” for government payments.

Judge Simiana pointed to documentation showing that Steward itself had authorised extensions of staff contracts in early 2023, including at the Gozo hospital.

The judge held that the agreements demonstrated Steward had contracted the services in its own personal interest.

The court also noted that, even where a formal written agreement may have been absent, a tacit agreement still existed because Steward had requested and benefited from the services provided.

‘Everything would continue as usual’

The court referred to testimony given by a former Steward employee,

He had said that when uncertainty arose over the future management of the hospitals, Signal 8 had been instructed to continue operating normally.

The court held that Steward could not encourage the company to continue providing services and later deny responsibility for payment.

Concession termination no excuse

Steward also argued that it should not be liable for services provided after March 18, 2023, the date on which the hospitals concession agreement with government was terminated.

But the court rejected that argument too, applying the legal principle of res inter alios acta, meaning that agreements between other parties could not automatically extinguish Steward’s own private contractual obligations.

The judge held that the termination of the concession agreement did not dissolve Steward’s contracts with third-party suppliers such as Signal 8.

Steward had also challenged the invoices themselves, arguing that Signal 8 had failed to produce sufficient documentation, including timesheets, to justify the sums claimed.

The court disagreed, noting that Steward had failed to produce evidence contradicting the work carried out.

The court ultimately concluded that Steward had contracted Signal 8 in its own name and for its own benefit, and could not avoid liability by referring to disputes with government entities.

Steward Malta Management Ltd was ordered to pay the full €159,388 as well as all legal costs.

Lawyer Nathalino Caruana DeBrincat appeared for Signal 8. Lawyer Paula Briffa appeared for Steward.

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