Mortgage not yet established on Center Party's Toompea property ({{commentsTotal}})

The Center Party's main headquarters are located on Toompea Hill in Tallinn's Old Town.
The Center Party's main headquarters are located on Toompea Hill in Tallinn's Old Town. Source: (Postimees/Scanpix)

The court dispute to keep the Center Party's headquarters building in Tallinn's Old Town impounded experienced its first setback in the Supreme Court when it established that the mortgage had not taken effect yet.

The first-tier Harju County Court established a judicial mortgage on the property last fall to secure an action brought by Midfield OÜ, a company of the Center Party's longtime campaign manager Paavo Pettai. Midfield turned to arbitrationto have the financial obligation arising from letters of guarantee issued by the party met and to have the action secured. The mortgage to secure the €730,000 claim was set at €800,680.

According to Midfield, there is reason to believe that not securing the action might make the execution of the sentence more complicated or even impossible as the plaintiff's primary claim is large and the defending party's liquidity is very weak.

On Sept. 13 of last year, Midfield OÜ 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 for three properties belonging to the Center Party for a total amount of €800,680.

The Center Party appealed the court's decision, but Tallinn Circuit Court on Oct. 24 left the ruling unchanged, agreeing with the reasoning offered by the first-tier court.

The Supreme Court said on Wednesday that the case must be sent back to the circuit court.

Editor: Aili Vahtla

Source: BNS

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