Experience
Estonia
Dispute Resolution, Arbitration & Conflict Management
January 26, 2018

TRINITI represents the lessor in a dispute with Rein Kilk

TRINITI represents the lessor in a large-scale dispute with Rein Kilk, one in which the bank requires Kilk to fulfil a surety agreement. Kilk is trying to rid itself of the obligation by lodging an objection to limitation. The Tallinn Circuit Court rejected Rein Kilgi’s application for limitation and agreed with TRINITI’s view that, in the event of the termination of the lease contract, the lessor first needs a reasonable time in which to determine the actual condition and value of the property being returned, and the three-year limitation period for the claim should not begin to run until that reasonable period has elapsed. In summary, the circuit court held that the starting point of the limitation period for the lessor’s claim must be determined on the basis of the following formula: the date of the cancellation of the contract + the time required for the lessor to determine the value (price difference) + the reasonable amount of time required for the lessee to provide compensation for the price difference. Rein Kilk has filed an appeal in cassation with the Supreme Court.