AS Kalev not granted leave to appeal

| Source: Luterma Luterma 

With its injunction, the Supreme Court resolved not to hear the appeal in
cassation, filed by AS Kalev to the ruling of the Tallinn Circuit Court from 25
June 2007. 

With its ruling of 25 June 2007, the Tallinn Circuit Court partially satisfied
the appeal in cassation, filed by AS Elveso, the water undertaking of Rae
Municipality, to the ruling of the Harju County Court from 15 March 2007. 

The resolution part of the Circuit Court ruling concerns AS Kalev's right to
receive waste water disposal services at the prices established by the Rae
Municipality Government with its Regulation No. 11 from 28 September 2004. The
above regulation, however, does not stipulate a quintuple fee for exceeding the
waste water pollution indicators, which AS Elveso is trying to charge from AS
Kalev. 

AS Kalev filed an appeal in cassation to the ruling of the Tallinn Circuit
Court from 25 June 2007, claiming that one of the main issues of the unsettled
dispute ― if the local government acts which are applicable to AS Kalev in Rae
Municipality and which concern establishment of the waste water disposal price
provide AS Elveso with the basis for charging an additional fee for
over-pollution ― remained unsolved. With the court rulings, AS Kalev has not
been obliged to pay the amounts charged by AS Elveso. This issue is to be
settled under separate court proceedings. 

According to law, the owner or possessor of a public water supply and sewerage
system (in Rae Municipality, AS Elveso) shall develop the system in the area
serviced by the public water supply and sewerage system in a manner which
ensures that all the registered immovables in the area are supplied with water
from the public water supply and that waste water is led off from the
registered immovables to the public sewerage system. AS Elveso should therefore
develop the treatment facilities to the capacity which would allow to serve
also AS Kalev. Since Rae Municipality has failed to develop its treatment
facilities to the required capacity, AS Kalev made the required investments and
will establish its own treatment facility. 

(See also AS Kalev's press releases from 20 March 2007 and 28 June 2007)


Allan Viirma
Head of legal service
6161 916