We successfully represented Prisma Peremarket in a precedent-setting business dispute that lasted over a year.
Harju County Court dismissed all of the claims by the owner of the premises, L95 OÜ. It confirmed Prisma’s position that the chain is not obligated to reopen a supermarket formerly located in the Linnamäe shopping center.
Aim of preventing waste led to a court case
The dispute began when Prisma started gradually downsizing the store at the Linnamäe shopping center, reducing the sales area from 3,500 square metres to 840 square metres. L95 saw that as a breach of contract, and as a result, the numbers of visitors to the shopping centre as a whole decreased by 65–70%. In addition, L95 filed for bankruptcy against Prisma, which Prisma has called an unjustified pressure tactic.
“We are satisfied with the court’s decision, as keeping a supermarket open in the Linnamäe shopping center would have proved highly illogical and would have resulted in massive amounts of food going to waste. We are prepared to pay rent to L95 OÜ until the end of the lease period and hope we can leave this business dispute behind us,” said Prisma Estonia country director Teemu Kilpiä.
Our services and client team
We advised the client in the legal dispute, providing support ranging from strategy development and evidence gathering to negotiations.
Our team was led by partner Paul Künnap, supported by senior associate Albert Linntam and associate Helery Maidlas.
