Bulgarian Medical Association wins final legal battle over "Doctor's House"

The Bulgarian Medical Association has finally won the legal battle regarding the “Doctor’s House” case, fully retaining ownership of the plot in central Sofia, the professional organization announced.

The property is owned by the BMA under a contract for the free transfer of ownership rights, concluded on April 4, 2006, in accordance with the State Property Act and the Regulations for its implementation.

Following the acquisition, a procedure for the independent construction of a building by the BMA was initiated; however, it was terminated upon the change of the professional organization’s leadership.

Thus, in 2013, the new leadership of the BMA selected the company “Digesta” to realize the “Doctor’s House” project, and on September 8, 2015, a contract was signed between the then-leadership of the BMA and the company’s manager.

The initial project envisioned the construction of an eight-story building with two underground levels and a total built-up area of 9,543 sq. m. Subsequently, a procedure to amend the Detailed Urban Plan (DUP) was initiated with the idea of nearly doubling the height to construct a 14-story building.

Despite the years that passed, no actual construction followed the project. Meanwhile, the BMA leadership identified serious risks to the professional organization’s interests arising from the terms of the contract. Instead of the BMA maintaining full control over its multi-million lev property in central Sofia, the agreed parameters stipulated that the organization would own only 30% of the future building, while the investor would own 70%.

It was also established that the contract lacked key guarantees to protect the BMA’s interests—no penalties for non-performance were included, nor was the initially discussed 5 million BGN performance guarantee.

Over the years, the Bulgarian Medical Association repeatedly invited the company to proceed with the actual execution of the contract, but construction never began. Instead, actions were taken to change the project parameters and increase the future built-up area.

Following a decision by the BMA Assembly, the Board of Directors was authorized to take action to terminate relations with the company and seek the rescission of the contract through judicial proceedings.

The legal proceedings passed through all court instances, and with the final ruling, the Bulgarian Medical Association fully retains ownership of the property, the organization added.

“With this decision, the BMA has protected the property and the interests of Bulgarian doctors. Today, the professional organization is once again the 100% owner of its property,” stated the leadership of the Bulgarian Medical Association.

The full texts of the regulations can be found here and here.