Monaco invokes "fraud" to challenge €140 million Esplanade des Pêcheurs penalty

The Monegasque government has filed an extraordinary appeal with the Supreme Court, seeking to annul a €140 million penalty owed to Caroli Immo in the Esplanade des Pêcheurs case. According to Monaco Matin, the state alleges that the judgment, originally issued in 2018 and reaffirmed in 2020, was the result of fraud orchestrated by the property developer and its legal representatives.

This unprecedented move was one of the final acts of former Minister of State Pierre Dartout, who, on 30th July, filed a detailed dossier accusing Caroli Immo of manipulating the judicial process. The allegations include claims of financial and personal conflicts of interest involving key legal figures, as Monaco Matin reports.

The Supreme Court rulings and the state’s response

In 2018 and 2020, the Supreme Court declared the government’s abandonment of the Esplanade des Pêcheurs project illegal, ordering the state to compensate Caroli Immo nearly €137 million plus interest. However, the government has since resisted executing the ruling. Monaco Matin explains that the state now argues it was deprived of a fair trial due to alleged collusion between Caroli Immo’s lawyers, including Thierry Lacoste—childhood friend of Prince Albert II—and the former Supreme Court president, Didier Linotte.

The government claims its suspicions of impropriety were confirmed after criminal investigations initiated earlier this year. It alleges that Lacoste had concealed his role in the case while maintaining close financial and personal ties with Linotte, raising serious questions about judicial impartiality, Monaco Matin reports.

Allegations of fraud and conflicts of interest

The government’s 60-page submission details purported financial arrangements between Lacoste and another lawyer representing Caroli Immo, which included a shared fee agreement based on the court’s ruling in the developer’s favor. According to Monaco Matin, these fees were tied to a substantial percentage of the compensation awarded, raising ethical concerns.

Furthermore, the state accuses Linotte of accepting favors, such as paid travel and other undisclosed benefits, from individuals connected to the case. It also highlights Linotte’s personal relationship with Lacoste as a factor undermining the court’s neutrality. Monaco Matin notes that the accusations have been described as “shocking” by those implicated, who categorically deny any wrongdoing.

Responses from those involved

Both Lacoste and Linotte have rejected the allegations. Linotte, as reported by Monaco Matin, defended his actions as transparent and professional, asserting that his relationship with Lacoste was no secret. Lacoste, meanwhile, argued that his involvement in the case was appropriate and dismissed the fraud accusations as “bad faith” on the part of the state.

Lacoste further criticized the government for basing its claims on documents allegedly obtained through illegal means, including hacked emails. According to Monaco Matin, he remains adamant that the evidence presented by the state lacks credibility.

Broader implications

This case, as Monaco Matin highlights, has drawn attention to Monaco’s judicial and governance systems, with the stakes reaching beyond the immediate financial implications. The outcome could set a significant precedent for how the Principality handles disputes involving large-scale development projects and the judiciary’s independence.

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