Law firm TARK successfully represented Haljala Municipality in a legal dispute with the State Shared Services Centre (RTK). On 25 January 2022, RTK issued a financial correction decision, deeming 25% (€170,700) of the funding allocated for the Võsu beach area recreational infrastructure project, developed by Haljala Municipality, ineligible for support.
RTK’s decision stated that Haljala Municipality had violated public procurement regulations during the project’s implementation. As a result, RTK determined that these breaches led to financial damage and applied a 25% financial correction to the allocated funding. The key issue in the dispute was whether Haljala Municipality had unlawfully altered the terms of the procurement contract during the project’s implementation, thereby breaching public procurement law.
Both the administrative and circuit courts ruled that Haljala Municipality did not violate procurement law when modifying certain terms of the contract during the project. The rulings from both courts provided valuable guidance on the permissibility of contract modifications in public procurement, which will help prevent similar disputes in the future.
Haljala Mayor Anti Puusepp highlighted the significance of the circuit court’s ruling for the municipality:
“This dispute meant that three years ago, we lost a significant amount of funding, which we had to cover from our own budget. The court’s final decision offers some relief to the municipality’s strained financial situation,” said the mayor, adding that the decision to seek legal clarity through the courts was both necessary and justified.
The legal team representing the client included partner Tanel Küün and senior attorney Rahel Behrsin.
Read more (in Estonian)
https://www.laanevirumaauudised.ee/uudised/2025/03/27/haljala-vald-saavutas-kohtuvaidluses-voidu
Photo: Haljala Municipality
