Pirkka-Marja Põldvere and Aivar Pilv successful at the Supreme Court
On 22.12.2021 the Supreme Court of Estonia satisfied the claim of a client of LEADELL Pilv Law Office. According to the contract between the parties, our client (claimant) was acting as the sole counsellor upon the sale of a real estate belonging to the defendant, and the latter was to pay a service fee. The claimant meditated the purchaser to the seller and the sale agreement was executed as a result of the negotiations. However, the defendant refused to pay the service fee, arguing that the final sales price was smaller than the „minimum price for which the seller agrees to execute the sale“ as set forth in the agreement. Therefore, the consultant had to request the court to order the service fee from the seller.
The first instance court satisfied the claim and ordered the defendant to pay the service fee. The appeal court overturned the judgement. The Supreme Court annulled the appeal court’s decision concluding that the appeal court had erred in applying the principle of good faith: „The chamber agrees with the county court that in a situation where the defendant has itself allowed to prepare the sale for less than the minimum price originally set and has nevertheless sold the building title right to a purchaser brought by the claimant for a purchase price smaller than the minimum price […] set fort in Cluse 3.3.1. of the consulting contract, it would be against the principle of good faith set forth in Art 6 of LOA to apply the Clause 3.3.1. of the consulting contract in a way that the claimant would lose the service fee agreed in the consulting contract.“