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Leadell Pilv Victorious in Precedent-Setting Estonian Case

Leadell Pilv Victorious in Precedent-Setting Estonian Case


Leadell Pilv has represented Urmas Nisuma, one of the owners of the Hotel Parnu, in a dispute with business partner Ado Sepa and OU Linden Hotell, which Sepa controls involving allegations that Sepa and his company had taken over effective control of Hotel Parnu from Nisuma and lefyt him out of both the profits and day-to-day business of the hotel.

According to Leadell Pilv, after almost four years of proceedings, the Court ruled "that OU Linden Hotell, which operates the hotel, must relinquish its possession on the hotel, all the keys and cards, and must turn over the profit earned in the past four years."

The firm describes the judgment as "an important precedent that is likely to influence future legal practice in Estonia." According to Leadell Pilv, "if until now a board member could without any substantial risk take everything from a company that was entrusted to him and it was sufficient to avoid responsibility that the transactions were not done directly with himself but his company, then this is no longer the case. The National Court stated that a transaction done between a company and another company owned by the board member is legally the same as if the transaction were done with the board member himself. The National Court said that such a transaction requires consent from the owners and without the owners’ consent only common everyday deals can be made. The same was upheld by the circuit court that decided that the rental agreement that allowed A. Sepa to take control of the hotel is void and must be overturned. Hopefully this case will have a positive effect on Estonian commercial law and legal practice as a whole."

Urmas Nisuma was represented by Leadell Pilv Attorney-at-Law Tambet Laasik.

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COBALT is closely integrated alliance of top-tier law offices in Estonia, Latvia, Lithuania and Belarus, making us one of the largest law firms in the Baltic market. 

COBALT is a trusted partner for daily matters and complex large-scale transactions and disputes. The firm’s broad spectrum of expertise and established position as the market leader give a comprehensive basis for providing advice on special areas of business law.

We advise top international and regional businesses, financial institutions, state and local governments, and the region’s most promising start-ups. We offer leading-edge solutions in key industry sectors: Consumer Products, Trade & Distribution, Real Estate & Construction, Pharmaceuticals & Healthcare, Energy & Utilities, Communications, Media & Technologies, Financial Services, Transport & Logistics.

COBALT has been named Baltic Law Firm of the Year 6 times. We were recognized as the Most Innovative Law Firm of the Year 2019 in the Baltics at the IFLR European Awards in London. COBALT also won CEE Legal Matters Deal of the Year Award for Estonia, Latvia, and Lithuania, as well as the overall Baltic Deal of the Year, at the 2019 CEE Legal Matters Awards. We have received multiple awards from the Chambers Europe, IFLR, The Lawyer and Mergermarket and we are regularly listed amongst the top performing M&A legal advisors in the Bloomberg, Thomson Reuters and Mergermarket deal tables

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