Estonian court rules state must pay Edelaraudtee €2.1m in compensation

Edelaraudtee trains served the country before Elron took over Estonia's rail service in 2014. (Postimees/Scanpix)
12/2/2016 8:50 AM
Source: BNS
Category: Business

The Tallinn Administrative Court ruled on Thursday in favor of Estonia's privately-owned train operator Edelaraudtee, which means that the Estonian state must pay the company 2.1 million euros in damages due to premature termination of contract.

The court did not, however, satisfy the rest of the complaint, court spokesperson Anneli Vilu told BNS.

The state is also obliged to pay Edelaraudtee's procedural expenses, while Edelaraudtee must pay the procedural expenses of state-owned AS Eesti Liinirongid, which operates under the Elron trademark.

The court's ruling has not yet taken effect and can be contested by the parties involved in Tallinn Circuit Court within a period of 30 days.

Edelaraudtee had previously stated that it was demanding that the state pay the company five million euros in damages for premature termination of a passenger transport contract.

"Edelaraudtee's loss due to a premature termination of contract is 4,975,507 euros," Edelaraudtee spokesperson Kersti Gorstov said in August 2013. "The size of the loss was calculated by an international auditing company. The final amount of the loss might change and will depend on various circumstances, including the next steps of the Ministry of Economic Affairs and Communications."

A previous decision regarding the case, which came into force, stated that the ministry's decision to prematurely terminate its 2009 contract with Edelaraudtee was lawful.

State-owned AS Eesti Liinirongid, operating under the Elron brand, took over operation of the country's intercity passenger rail services on Jan. 1, 2014, using its own rolling stock of new Stadler FLIRT electric and diesel trains.

Editor: Aili Vahtla

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