ÁTVR appeals rulings in Dista compensation cases

Iceland’s State Alcohol and Tobacco Retailer, ÁTVR, is appealing two compensation rulings it lost against wholesaler Dista, mbl.is reports. The cases will be heard by the Court of Appeal.

Dista sought recognition of ÁTVR’s liability for financial losses after the retailer removed Faxe Witbier and Faxe IPA, as well as Jaume Serra Rosado Brut and Jaume Serra Brut Nature Traditional Method, from its stores and stopped ordering them.

The Supreme Court overturned ÁTVR’s decision in 2024. It found the retailer liable after the products had been removed from sale in breach of the law and the constitution. The court agreed that ÁTVR should have known it could not base its product selection on profit margins, since legislation required selection to be based on demand. Dista’s products had been replaced by products that were less popular.

The Supreme Court did not award compensation, but ordered ÁTVR to pay a total of 3.7 million krónur in legal costs.

ÁTVR also asked for permission to appeal the cases directly to the Supreme Court, arguing they could set a precedent on public authorities’ liability for damages. The court rejected the request, saying the cases did not have sufficient precedential value, general significance for the application of legal rules or substantial social importance.

Jónas Fr. Jónsson, Dista’s lawyer, said his client found it noteworthy that ÁTVR had shown no willingness to make amends, such as compensating for losses, despite the Supreme Court’s ruling that the retailer had broken the law. He said the institution operates under the responsibility of the finance minister.