25
Sat, May
62 New Articles

CMS Successful for Kooperatsiya Parallel 2000 in Post-Privatization Dispute

CMS Successful for Kooperatsiya Parallel 2000 in Post-Privatization Dispute

Bulgaria
Tools
Typography
  • Smaller Small Medium Big Bigger
  • Default Helvetica Segoe Georgia Times

CMS has successfully defended hydropower producer Kooperatsiya Parallel 2000 in a post-privatization dispute initiated by Bulgaria’s Public Enterprises and Control Agency.

According to CMS, in 2020, the PEC Agency brought a claim against Kooperatsiya Parallel 2000, which had acquired a hydropower plant back in 2006 through privatization. "The Agency sought payment of liquidated damages amounting to 50% of the sale price, based on allegations of a breach of the obligation for non-disposal of the asset, stipulated in the privatization contract."

"The court fully agreed with our arguments and ruled that the obligation assumed under the privatization contract is null and void, as it is in direct contradiction to the constitutional right to private property and the rules for the protection of property provided for by the European Convention on Human Rights," CMS informed. "The court further stated that the specifics of the privatization process and the public interest defended by the post-privatization control do not substantiate any restrictions on the enjoyment of property that are not subject to reasonable time limits. On this basis, the court rejected all claims as unfounded on the merits with a final court judgment."

"This ruling is unique, although it is not a rare practice for such clauses to be included in contracts for the privatization of infrastructure assets. Thus, the ruling sets an important precedent for many post-privatization disputes that may be brought on the same grounds," the firm added.

The CMS team was led by Partner Assen Georgiev and Associate Yana Antonova.

CMS at a Glance

CMS Sofia is a full-service law firm, the largest international law firm in Bulgaria and one of the largest providers of legal services in the local market as a whole. The breadth and depth of our practice means that our lawyers are specialised, with a level of specialisation that few of our competitors can match.

CMS Sofia is the Bulgarian branch of CMS, a top ten global legal and tax services provider with over 5000 lawyers in 43 countries and 78 offices across the world.

CMS entered the Bulgarian market as one of the first internationally active law firms in 2005 and is now among the most respected legal advisors in the country. We have 7 partners, 4 counsel and over 30 lawyers in our office in Sofia.

Our legal experts, who are rooted in Bulgaria’s local culture, can also draw on years of experience in foreign countries and are at home in several legal systems at once. We know the particularities of the local market just as well as the needs of our clients and combine both to achieve optimum solutions. Our lawyers are Bulgarian qualified and we also have English qualified experts – all of them regularly working on cross-border mandates.

In our work, we focus on M&A, Energy, Projects and Construction, Banking and Finance, Real Estate, Media, IP and IT law, Tax, Employment law, Competition, Procurement and any kind of Dispute resolution, including arbitration and mediation. What’s more, we also take care of the entire legal management of our clients’ projects.

Firm's website.