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COBALT successfully advised Astro Vara, a company engaging in the management and development of commercial real estate, in the case of allegedly caused damage in relation to suspension of business activities with the value of one million euros

2021-04-07

COBALT advised Astro Vara, a company engaging in the management and development of commercial real estate, in a dispute with Kermon Hekta and Kermon, companies that are presently held by Kersti Kracht.

The conflict started when Kermon leased office premises in an office building that belonged to Astro Vara, but ended up in a debt of the lease payments due to its growing management and economic problems. In order cover the debt, Astro Vara exercised its right of security and terminated the lease agreement, which Kermon alleged to have caused damage to Kermon and Kermon Hekta in the amount of almost one million euros.

COBALT has represented Astro Vara since the moment when it was established by an interim judgment that Astro Vara was guilty of preventing the member of the management board of Kermon to access the work premises. The question in the following procedure was mainly whether the business activities of the companies of Kermon had a positive market value before the access of the management board member was prevented and whether the activities of Astro Vara impaired such value.

By its judgment of 6 April 2021, Tallinn District Court confirmed the judgment of the County Court, stating that Astro Vara did not cause any damage to Kermon or Kermon Hekta by its activities, as the companies of Kermon were not operating, and no actual damage could be caused to the companies by preventing the management board member’s access to the premises.

From COBALT, Astro Vara was represented by Managing Partner Jaanus Mody, and by Senior Associates Merle Veeroos and Kadri Michelson.