The future of the Playa Bonita Hotel in Veracruz, Arraijan, is uncertain.
This comes after the contract that allowed the construction of the hotel was declared null by the Third Chamber of the Supreme Court in a May 20 judgment. The contract was signed on June 17, 2003, between the Interoceanic Region Agency of the Ministry of Economy and Finance and Paradise Beach Corporation.
Judge Abel Zamorano decreed the contract to be null and void as part of a 2009 complaint presented by the developer Duasa, another company that was interested in the project.
Zamorano's ruling was also signed by judges Victor Benavides and Luis Ramón Fábrega.
The ruling has clouded the future of the hotel, which cost $20 million to build and which opened in 2005.
Attorney Candelario Santana said the company could be forced to pay damages to Duasa.
Paradise Beach could also be forced to rework its deal with the state, or it could be forced to sell the facility.
"The state has a range of options," the attorney said. "The land is the main thing, the accessory is the hotel and based on that the state may seek ownership of everything."
Herman Bern, the legal representative of Paradise Beach Corporation, is reportedly out of the country. Duasa officials declined to comment.