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Estonia's top court accepts Center Party's appeal in letters of guarantee case

The Supreme Court of Estonia on Monday accepted the Center Party's appeal against a court ruling in a case related to letters of guarantee issued by the party.

On Sept. 13 last year, Midfield OÜ, a company owned by longtime Center Party campaign master Paavo Pettai, turned to the arbitration court of the Estonian Chamber of Commerce and Industry with a claim that the financial obligation arising from the letters of guarantee be met and to have the action secured. Two days later, Harju County Court issued a ruling to secure the action and established a judicial mortgage with regard to three properties belonging to the Center Party for a total amount of 800,680 euros.

The Center Party thereafter repealed the court's decision, but Tallinn Circuit Court, having agreed with the reasoning offered by the first-tier court, left the ruling unchanged.

The party, which at the time belonged to the opposition and has since emerged as the senior partner of the new coalition government, turned to the Supreme Court, which on Monday accepted the appeal against the court ruling. The top court has yet to determine the date of the appeal hearing.

The letters of guarantee issued to Pettai and his company, totaling into the hundreds of thousands of euros, were signed in 2014 by former party secretary general Priit Toobal. Edgar Savisaar, who was chairman of the Center Party at the time, claimed he had been unaware of the letters of guarantee Toobal had issued.

Editor: Editor: Aili Vahtla

Source: BNS

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