The Chapala City Council is exploring possible solutions to settle a decade-long legal dispute with Led Lumina, the company that sued the local government for breaching a contract to provide public lighting services to the city.
The lawsuit stems from a contract signed in March 2012, when Led Lumina Leasing, S.A. de C.V., Sofon ENR, was granted a concession to install a public lighting system consisting of 2,733 street lamps and 60 video surveillance cameras.
In 2015, the company filed a lawsuit against the government for failing to meet the terms of the contract. The case was decided in Led Lumina’s favor in 2016, with the State Administrative Tribunal ruling that the municipality must pay 26.1 million pesos in compensation, plus 3% monthly interest for late payments. However, due to the lack of payment agreements by subsequent administrations, the amount owed has ballooned to a staggering 144 million pesos as of this month.
Mayor Alejandro Aguirre Curiel addressed the issue of the mounting debt during the City Council’s session on February 28. He urged council members to participate in roundtable discussions to explore options for resolving the dispute with Led Lumina.
City Solicitor Lilia Alvarado Macías explained that the company has submitted a letter of intent to negotiate a payment agreement. One possible solution is to settle part of the debt with a title to a choice piece of municipal property, with the remainder to be paid through the issuance of urbanization and construction permits.
Aguirre emphasized the urgency of reaching a settlement, pointing out that the debt continues to grow by nearly 800,000 pesos per month, which poses a serious threat to the municipality’s finances.