News Article Austria CA Immo lawsuit report
by Property Forum | Report

CA Immo has taken the decision to bring an action for damages against the Republic of Austria and the Province of Carinthia for unlawful and culpably biased influence on the best bidder procedure in the context of privatization of the Federal Residential Property companies in 2004 and for the unlawful failure to win the best bidder procedure.

The Province of Carinthia is a co-defendant, since indications have emerged from the pending BUWOG criminal proceedings against the former Federal Minister of Finance, Mr. Grasser, as well as against Messrs. Meischberger, Plech and Hochegger (with charges among others of breach of trust and accepting gifts in position as an official), that officials of the Province of Carinthia are also responsible for a breach of confidentiality.

CA Immo was severely damaged by the unlawful influence on the bidder procedure. In order to assert the damage sustained, the company will first bring a partial action for an initial sum of €1 million out of the total damage of €1.9 billion.

Since CA Immo's claims for damages exist independently of any criminal conviction of the defendants in the course of the BUWOG criminal proceedings there is no need to wait for the outcome of the ongoing criminal proceedings.

Since January 2018, CA Immo has made several requests for discussions with decision-makers of the Republic of Austria and the Province of Carinthia. Despite the required economy in the use of public funds, neither the Republic of Austria nor the Province of Carinthia have so far been willing to enter into official content talks to resolve the claims out of court and to conclude a trial agreement. The now resolved partial action in the amount of €1 million is a further offer to the Republic of Austria and the Province of Carinthia to conclude a trial agreement and thus to conduct a model procedure that will save tax money, the press release concludes.