The Constitutional Chamber of Costa Rica accepted an appeal, effectively suspending the construction of the project by Las Catalinas Properties Holding Ltd.
The suit, lodged by Mr. Luis Carlos Sanchez and Robert Faris, denounced the use of well water without an authorized concession and tree felling of high value timber.
"The project is located in an area where there currently is not any legal operator established for the providing drinking water through an aqueduct, which means that a letter of availability can not be issued" says a letter given in evidence and signed on May 12 last by Guillermo Arce, of the Water and Sewerage company", reported Nacion.com
In Costa Rica a ruling has declared that the collection of property tax for motor vehicles used as construction machinery is unconstitutional.
The court ruling states that tax should only be applied to vehicles used for transport and transfer of persons or goods (goods, furniture, etc..) and not for machinery used in construction.
The statement from the Constitutional Court adds, "In order to avoid serious damages to the Treasury, the declaration of unconstitutionality has no retroactive effect for those who have paid the tax during the term in which the rules declared unconstitutional were in effect, so that in such cases the rules take effect from the date of judgment", reported Nacion.com
Conflicting decisions by the courts have discouraged investment by the firm Cementos David in Costa Rica.
The company Comcoas Inc. (Cementos David), has ceased operations on Monday, citing the "legal uncertainty" of the country.
Since opening in 2007, Cementos David has faced a number of law suits over its alleged illegal operation permits and environmental pollution, which were filed by residents of San Rafael de Alajuela.
For the third time the Constitutional Court has prevented an attempt to expand by 200 meters the containment ring in the Greater Metropolitan Area (GAM).
This was achieved by declaring the ruling of the decree of February 2010, which allowed some 5,700 acres to be used for development, unconstitutional.
"With this decision, the Court maintains the criteria issued in 2008 and 2009, when it also brought down two decrees that had the same purpose", reported Nacion.com