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.

Source 
(via yle.fi)