Court orders Kuopio company to pay nearly one million euros to Senate Properties over renovation dispute

The North Savo District Court has ordered a Kuopio-based company to pay nearly one million euros in damages and legal costs to Senate Properties following a dispute related to renovations at the Kuopio Prison. The conflict began after Senate Properties appointed a contractor named Ykkös Infra for the renovation project in 2018. However, in the spring of 2019, Senate Properties terminated the contract with Ykkös Infra, citing delays and errors in the work.

Another company completed the renovations and reportedly had to make numerous corrections and rebuild parts of the project done by Ykkös Infra. Issues had arisen regarding weather protection and safety compliance, leading to temporary work stoppages.

Ykkös Infra sued Senate Properties for breach of contract, seeking compensation for damages and payments for work completed. The company argued that Senate Properties did not have the right to terminate the agreement. Conversely, Senate Properties maintained that it acted within its rights, as the project was significantly behind schedule and riddled with mistakes, which the contracting entity had repeatedly pointed out.

The court sided with Senate Properties, concluding that evidence indicated the delays were due to Ykkös Infra’s actions and that the quality of work was unsatisfactory. The ruling dismissed Ykkös Infra’s claims, affirming Senate Properties’ right to terminate the contract and requiring Ykkös Infra to compensate Senate Properties and cover two-thirds of its legal fees, totaling about 980,000 euros. Some of Senate Properties’ compensation claims were rejected by the court.

Both parties have expressed dissatisfaction with the ruling. The deadline for appeals is November 1, and for counterclaims, it is November 15.