APPEAL OF JUDGMENT

Aarhus, Denmark - The Regional Court of Warsaw has delivered its judgment in the dispute which Terma filed in 2014 against the Polish Ministry of National Defence. 

Both parties have decided to take the judgment to the court of appeal as both parties were dissatisfied with the judgment.

The background in short: In June 2010, Terma was contracted by the Polish Armaments Inspectorate (IU) to equip 22 Polish helicopters of the Mi-17 and Mi-24 types with Aircraft Survivability Equipment. However, a dispute arose related to contractual matters on the requirement on false alarms. It was not possible to reach a compromise, and the customer decided to terminate the contract. Thus, Terma was compelled to ask the court to settle the disagreements between the parties.

After nearly five years, the court delivered its judgment. Neither the Polish Ministry of National Defence nor Terma are satisfied with the judgment, and both parties decided to appeal to a higher court.

The judge found that the contractual matters which were the subject of the case were ambiguously worded by the Polish Ministry of National Defence. However, the court argued that Terma should have realized this before entering into the contract.

“We are very surprised with the outcome. This was a public tender, and no other bidders pointed this out and thus realized that the contract was ambiguously worded. The judgment might also be affected by the actual circumstances within the Polish court system,” says Steen M. Lynenskjold, Executive Vice President & CCO, Terma.