VELEZ-MALAGA town hall has paid out a two million euro fine to residents in El Copo.
A hearing in 2008 ruled in favour of 18 residents who said they were subjected to long-term noise disturbance from bars and restaurants in the area between 1990 and 2003.
The Andalucia Supreme Court ordered the town hall to pay 156,000 euros to each of the 18 residents for failing to stop the noise pollution.
The case has set a precedent for residents experiencing noise pollution in other areas.
People living in the Puerto Marina area of Benalmadena are threatening to take legal action if the town hall does not take action against the noisy nightlife there.