Partner Chirag Mody and Senior Associate Silvia Urgas Successfully Represented Clients in Tallinn Circuit Court

06.06.2023 Partner Chirag Mody and Senior Associate Silvia Urgas Successfully Represented Clients in Tallinn Circuit Court

By its judgment of 12 May 2023, Tallinn Circuit Court entirely dismissed the accusations made against our clients, including board member liability, breach of employment agreement, and consequent damage claims in a noteworthy and complex case.

The clients represented were founders, board members, and employees of a company providing services. Their ex-employer sued the Clients and accused them of taking over the client base and causing damage to the ex-employer. 
District court ruled favourably to our clients, as did the county court, and all claims were dismissed. The court clarified several crucial points: 
1. In businesses centred around services, clients often build stronger bonds with a specific specialist than with the company itself.
2. The potential loss of clients is a business risk, particularly when specialists leave the company.
3. Accepting clients of an ex-employer by a specialist is not necessarily an infringement. 
4. Board member does not have to pay back the costs of a management course completed during their time as board member if no such compensation has been previously agreed upon.  

The court also decided that all costs are borne by the opposing party.