We advised Elering in a court case in which the Harju County Court dismissed in full the claims brought by Pakrineeme Sadam (PNS) against Elering. The plaintiff initially sought approximately EUR 2.7 million in rent, plus interest, from Elering, and additionally, EUR 100 million in damages. The court dismissed both claims.
The dispute arose from the development of LNG receiving infrastructure
This was a complex dispute involving several legal issues, including the alleged existence of a lease relationship and claims of contractual and non-contractual liability that formed the basis of the EUR-100-million damages claim.
The roots of the dispute date back to 2022, when, following Russia’s aggression against Ukraine, the parties collaborated to establish LNG receiving capacity in order to strengthen the region’s energy security and security of supply. Pakrineeme Sadam constructed a mooring quay in Paldiski, while Elering developed the gas infrastructure required for the LNG project.
Later, Pakrineeme Sadam filed a lawsuit against Elering, claiming, among other things, that a lease relationship had been established between the parties and demanding EUR 2.77 million plus interest. Additionally, the plaintiff sought EUR 100 million in damages for alleged lost profits.
The court found that granting Elering access to the construction site for the installation of gas infrastructure did not establish a lease relationship, noting that PNS and Elering had not entered into a lease agreement or any other paid usage agreement in 2022. The court found that the correspondence and discussions between the parties merely reflected negotiations regarding various possible solutions and that no agreement of the kind required to establish a lease relationship had been reached.
The EUR-100-million claim for damages was dismissed
The court also dismissed Pakrineeme Sadam’s additional EUR-100-million damages claim. “The decision made by the governments in October 2022 to route the FSRU to Finland was a political decision at the governmental level. There was no contractual relationship between PNS or its subsidiary Balti Gaas OÜ and Elering, and so no breach existed to provide grounds for a claim for lost revenue totalling EUR 100 million. Therefore, there was no liability under either contract law or tort law,” the court noted in its decision.
In addition, the court found that Elering did not make unjustified use of the quay constructed by Pakrineeme Sadam when building the gas infrastructure. The necessary approvals for constructing the gas infrastructure were in place.
At the time the dispute arose, PNS was jointly owned by Alexela and Infortar, each of which held an equal share. Earlier this year, Infortar sold its stake to Nordic Stream Group, owned by entrepreneurs Olav Miil and Erik Laidvee. The court decision has not yet taken effect, and the opposing party may file an appeal against it.
Our services and client team
We advised Elering throughout the proceedings, including analysing the claims and evidence, drafting the statement of defence and other procedural documents, developing the litigation strategy, evaluating technical and expert materials, and preparing for witness examinations and the presentation of evidence.
The team was led by senior associate Marcus Niin. The team also included partners Carri Ginter and Maria Pihlak, and associates Iris Rebane and Katariina Kuum.
