Tallinn Circuit Court fully satisfied the appeal of senior associates Chirag Mody and Silvia Urgas and denied the opposing party’s contractual penalty claim. At that, the Circuit Court fully agreed with the explanation according to which, the opposing party’s appeal for claiming EUR 700,000 must be denied. The parties argued over the reimbursement of costs, loss of profit, payment of the contractual penalty and late interest. The Circuit Court also confirmed that if it has been agreed in the lease agreement that the lessee will not be compensated for their construction work, it applies also in a situation where the work has not become depreciated upon early termination of the lease agreement due to the lessee.
By its judgment of 26 March 2021, Tallinn Circuit Court fully denied the reimbursement of costs, loss of profit and contractual penalty claims filed against the client.
