Sauna Dypp sues Tórshavn municipality for 1.9 million krona over withdrawn contract

The owners of Sauna Dypp have filed a 1.9 million krona lawsuit against Tórshavn municipality after the local government reversed its decision to award them a contract for a wellness facility in Álakeri, reports Faroese broadcaster KVF.

The company had initially been selected in August last year following a tender process. Technical managers, harbour authorities, and the city architect had all recommended entering into an agreement with Sauna Dypp, according to KVF. However, when the proposal reached the city council, the building and planning committee instead approved an offer from a different provider.

The municipality subsequently withdrew its original tender and issued a new one, leaving Sauna Dypp—who had already invested time and resources into the project—claiming they had been misled.