Anneli Aab successfully represented client in Supreme Court
Senior associate Anneli Aab is representing in court dispute a client Seeder Agri OÜ who had a right to cut timber and concluded a contract for transferring the right. Court dispute occurred due to the advance payment made to the transferor by the acquirer who failed to cut the timber during the set term. The acquirer claimed for the advance payment to be refunded under the provisions of unjust enrichment.
County court as well as district court established that in such a situation indeed the acquirer has the right to claim the refunding, however the Estonian Supreme Court agreed with the standpoint of Seeder Agri OÜ stating that the Law of Obligations Act was applied incorrectly. The Supreme Court explained (referring also to its previous case law) that termination of a contract, whether by agreement or due to the expiration of term or also by cancellation, does not provide the necessary legal grounds or reason to apply the provisions of unjust enrichment. Therefore the cassation of Seeder Agri OÜ was satisfied.
The decision of the Estonian Supreme Court from 20.06.2018 annulled the decision of the district court in civil case No. 2-17-280 and was sent for revision to the same district court. Proceeding will continue according to the guidelines provided by the Supreme Court.