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COBALT successfully represented AS RAGN-SELLS

2018-11-06

COBALT advised and successfully represented our long-term client AS RAGN-SELLS in a monetary claim against the client.

The dispute primarily concerned the expiration of the claims for damages in the lease agreement. Specifically, can the lessor wait three years for the enforcement of the claim for damages similarly with the contractual claims or does the claim under lease agreement expire sooner. Another question of the dispute concerned the suspension of the expiration of the claim due to negotiations. Specifically, whether the defendant should fear that by responding to the unjustified claim and providing reasons for the rejection of the claim, it could be considered as holding negotiations that suspend the expiration of the claim.

Both the court of the first instance and the court of appeal agreed with our position that the lessor’s claim for damages arising from the lease agreement is subject to a shortened deadline. Furthermore, only the communication between the parties which indicates the desire to find a solution to the claim can be considered as the negotiations that suspend the expiration of the claim. The courts dismissed the claim due to the expiry of the claim. The entry into force of the judgment of the circuit court will bring important legal clarity in regard to the suspension of the expiration due to negotiations.

COBALT’s team was led by senior associate Kaidi Reiljan-Sihvart who was supported by partners Liina Linsi and Elo Tamm.