Helsinki Court of Appeal to hear metro automation project dispute between Helsinki City Transport Authority and Siemens
Tuesday 3rd September 2024 on 06:38 in
Finland
The Helsinki Court of Appeal will soon hear a case regarding a troubled metro automation project that began in 2008 between the Helsinki City Transport Authority (HKL) and Siemens. Initial cooperation faltered, leading to a protracted legal dispute that has unfolded over recent years. In 2020, the Helsinki District Court issued a partial judgment asserting that HKL’s decision to terminate the automation contract with Siemens was justified. Siemens Mobility’s CEO, Juha Lehtonen, indicated in a recent statement that the company deemed it necessary to appeal the District Court’s rulings, claiming there were no grounds for the termination of the contract.
In a subsequent ruling in 2021, the court ordered Siemens to pay HKL over €4.9 million in damages stemming from the contract termination, along with approximately €3 million in refunds related to the automation of both the metro and metro depot. Conversely, HKL was also ordered to pay Siemens around €10,000 for the depot expansion automation. However, the majority of each party’s compensation claims were dismissed. Initially, HKL and West Metro sought about €180 million from Siemens, while Siemens counterclaimed approximately €160 million from HKL.
The appellate process is divided into two phases. The first phase will evaluate the contract termination, with a ruling expected in March 2026. The second phase will address damages, with a decision likely in the summer of 2027. The timeline of the dispute has been extensive, beginning with the original agreement in 2008 and significant legal proceedings ongoing until now.