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Nove Successful in Estonian Public Procurement Dispute

Nove Successful in Estonian Public Procurement Dispute

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Nove has successfully represented AS SEBE bus and transportation company in a public procurement dispute.

According to Nove, the Estonian Supreme Court dismissed the appeal of a transport company of the District Court's decision that its replacement by AS SEBE due to what Nove describes as its "continuous breach of contract" was proper.

According to Nove, the Court's decision "affirmed that the contracting authority has the right not to tolerate poor quality." Elaborating, the firm reports, "the case law has confirmed that even small but persistent and systematic breaches of contract can lead to the exclusion of an economic operator from subsequent public procurement .... According to the ruling of the District Court, which has entered into force, infringements of previous procurement contracts may also be assessed as a whole, even if no single infringement gave rise to cancellation or a heavy contractual penalty. The total number of sanctioned infringements listed on dozens of pages over a couple of years clearly exceeds the level at which the infringements can be considered as serious and continuous."

According to Nove, "Attorney-at-law Veiko Vaske commented that the ruling brings the performance of public contracts closer to normal contractual practice. The message from the courts is that, when executing over-the-counter procurement contracts, one cannot count on the contracting authority to forget all old sins overnight due to the formal nature of the procedure and to avoid problems with the next procurement. The customer is ultimately king and having a good customer relationship and diligent and professional execution of contracts is also the key to success in the public procurement market." 

Estonian Knowledge Partner

COBALT is closely integrated alliance of top-tier law offices in Estonia, Latvia, Lithuania and Belarus, making us one of the largest law firms in the Baltic market. 

COBALT is a trusted partner for daily matters and complex large-scale transactions and disputes. The firm’s broad spectrum of expertise and established position as the market leader give a comprehensive basis for providing advice on special areas of business law.

We advise top international and regional businesses, financial institutions, state and local governments, and the region’s most promising start-ups. We offer leading-edge solutions in key industry sectors: Consumer Products, Trade & Distribution, Real Estate & Construction, Pharmaceuticals & Healthcare, Energy & Utilities, Communications, Media & Technologies, Financial Services, Transport & Logistics.

COBALT has been named Baltic Law Firm of the Year 6 times. We were recognized as the Most Innovative Law Firm of the Year 2019 in the Baltics at the IFLR European Awards in London. COBALT also won CEE Legal Matters Deal of the Year Award for Estonia, Latvia, and Lithuania, as well as the overall Baltic Deal of the Year, at the 2019 CEE Legal Matters Awards. We have received multiple awards from the Chambers Europe, IFLR, The Lawyer and Mergermarket and we are regularly listed amongst the top performing M&A legal advisors in the Bloomberg, Thomson Reuters and Mergermarket deal tables

More information on Cobalt can be found at www.cobalt.legal

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