- abante
Nullity proceedings
We represent contracting authorities as well as bidders and applicants in nullity proceedings before all public procurement tribunals and OLG senates.
We examine the admissibility of the de facto award for bidders who have been passed over. If we come to the conclusion that the de facto award should not have been made, we approach the contracting authority before the court if this is still possible in view of the tight deadlines. The aim is to achieve a voluntary termination of the de facto contract. This approach keeps costs low and also leads to success more quickly than a legal dispute.
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If the contracting authority refuses an out-of-court solution, we initiate nullity proceedings. As part of the inspection of files, we check whether the direct award was based on misleading information from the successful bidder. If this is the case, we advise on the options for action under competition law.
For public contracting authorities, we first check whether the direct award was permissible and can be brought down. Depending on this, we recommend different courses of action. Sometimes it is appropriate to pre-empt the procurement chamber and voluntarily terminate the contract with the winning bidder. If this cannot be achieved with legal certainty or if the application for a declaration of nullity does not have sufficient prospects of success, we will vigorously oppose it. We also assist the contracting authority in the event of a subsequent new direct award of a contract so that it does not make any further mistakes.
Unlawful de facto awarding of contracts is the most serious possible breach of public procurement law. We help you to avoid this violation under all circumstances. Please do not hesitate to contact us.
Here are a few more examples of successful proceedings we have recently conducted:
- Representation of an IT service provider after direct award due to actual technical reasons, value: approx. € 2 million
- Representation of an IT service provider following direct award of contract due to technical reasons based on an artificial restriction of the contract parameters, value: approx. €1 million
- Representation of a security company following direct award of contract due to lack of urgency, value approx. € 1.5 million
Interim injunction
If the relevant EU threshold is not reached, we also represent bidders and applicants as well as public clients before the sub-threshold review bodies. This option is available in Rhineland-Palatinate, Saxony-Anhalt, Thuringia and Saxony.
Otherwise, we litigate for clients and bidders before the administrative and civil courts. The regional court usually has jurisdiction. Only in exceptional cases is it a matter of a stop order before the administrative court.
The preliminary injunction procedure before the regional courts is wrongly underestimated. It offers a quick, effective remedy for smaller cases, which can be worth several million euros in the construction sector. However, clients and bidders must be careful: Lawyers are mandatory in the regional courts.
A complaint is always necessary, even below the EU thresholds, despite the lack of statutory regulation. We will file the necessary complaints for you and submit the necessary applications to the competent court without delay.
Cases:
- Representation of a demolition company before the Berlin Regional Court and the Court of Appeal due to violations of the analogously applicable VOB/A, preliminary injunction proceedings, value €220,000
- Representation of a road construction company before the Regional Court of Erfurt due to violations of the VOB/A, preliminary injunction proceedings, value. approx. 100.000 €
- Representation of a consulting firm due to an unlawful narrowing of the suitability criteria in the award of a consulting contract for the procurement of large equipment, preliminary injunction proceedings, value € 200,000
- Representation of a painting company before the Regional Court of Dresden due to unlawful suitability requirements and unlawful exclusion of the offer, preliminary injunction proceedings, value approx. 84,000 €
Compensation for damages
Following breaches of public procurement law, there may be a variety of claims for damages, which we enforce on behalf of bidders and applicants. We represent public clients and grant recipients in the event of unjustified claims.
A typical category of damage is the negative interest. It is particularly, but not only, relevant after an unlawful annulment. In this case, the bidder demands to be treated as if it had never heard of the procurement procedure. This is because in this case, the bidder would not have made any economic effort to participate in the procedure. It is therefore particularly important for contracting authorities to correctly document the decision to cancel the contract as part of their procurement compliance.
Another category of damages is positive interest. Unlike in many other European Union countries, a bidder in Germany does not have to have contested a review procedure in order to claim compensation for positive interest. This puts contracting authorities under massive pressure, particularly in the case of decisions to exclude first-placed bidders. They should therefore not make such decisions without thorough examination. Often, arguments are made prematurely on the basis of alleged formal errors.
Cases:
- Representation of a bypassed bidder against a statutory health insurance company, claim for damages based on the positive interest, out-of-court settlement for a high five-digit amount
- Representation of a law firm that had been ignored in an award procedure, claim for damages based on the positive interest, out-of-court settlement for 95% of the asserted claim
- Numerous court representations aimed at compensation for negative interests following breaches of public procurement law (e.g. Chemnitz Regional Court — 3 S 52/22; Magdeburg Regional Court — 10 O 181/22; Munich Higher Regional Court — 1 U 1804/21)
- Representation of a towing company against a police headquarters in the first and second instance (LG Wiesbaden — 9 O 587/20; OLG Frankfurt — 11 U 39/21) Instance (LG Wiesbaden — 9 O 587/20; OLG Frankfurt — 11 U 39/21) to claim damages in a five-digit amount to compensate for financial losses as a result of an unjustified blocking of an award.
Procurement block
If a bidder is alleged to have committed serious misconduct or to have performed a previous contract poorly, this can lead to an award ban.
It goes without saying that contracting authorities cannot impose award restrictions at will. Instead, they must comply with strict legal requirements. In particular, they should be familiar with the relevant case law and document the reason for blocking just as carefully as their discretionary considerations. This means that they should address the pros and cons of blocking the award of contracts.
We support public contracting authorities in the implementation and documentation of the blocking decision. We also defend their blocking decision both before the review bodies and before the ordinary courts.
For bidders, we check in advance whether the blocking decision was lawfully imposed. Sometimes they should not take action against it — even if there is a chance of success on the merits — e.g. because the blocking decision will not be published in the register or because the maximum permissible blocking period is about to expire. Often, however, there is no real alternative to a legal dispute, which we will resolutely pursue on your behalf if there is sufficient prospect of success.
Cases:
- Enforcement of the lifting of a procurement ban due to an alleged breach of trust
- Enforcement of the lifting of a procurement ban following violations of the right of residence
- Enforcement of the lifting of a procurement ban following an investigation into bodily injury
Contract adjustment, termination, defect and supplementary dispute proceedings
We represent clients and contractors as well as main contractors and subcontractors in disputes concerning their contractual rights and obligations arising from public contracts and subcontractor agreements. This can be a dispute over defects or a dispute over a delay in performance. Often it is simply a matter of contract adjustment or remuneration claims.
In addition to traditional representation in construction law, we are also active in more unusual areas of contract law, e.g. in the security and safety industry, in building cleaning or in relation to national defense.
Cases:
- Out-of-court representation of a security service provider due to alleged violations of contractual provisions and the ArbZG, value approx. 82,000 euros
- Out-of-court representation due to a tariff adjustment, value approx. 81,000 euros
- Legal representation due to a tariff adjustment, value 105,000 euros
- Separation of a security company from a subcontractor contract in the Rhine-Main area
Competition law disputes
In the battle for public contracts, competitors sometimes act unfairly. The public procurement review bodies offer only imperfect protection here, as they only review the violation of bidder-protecting rights in the award procedure. This is not the case with the civil courts, which ensure compliance with the law against unfair competition in response to corresponding applications. We take action on behalf of bidders and applicants against unfair market manipulation measures. Typical cases include unlawful attempts to poach employees, misleading information to the public sector, for example regarding alleged unique selling points, or breaches of applicable law when applying for public contracts or in the course of their execution.
Cases:
- KG — 5 U 9/22 (misleading information about alleged unique selling proposition when placing a direct order)
- Magdeburg Regional Court — 7 O 1109/21 (violation of the Legal Services Act when applying for a public contract)
- LG Frankenthal — 6 O 248/16 (violation of pharmaceutical and pharmacy law requirements in the execution of a public contract)
Price adjustment
Price changes during the term of a contract are a frequent point of contention, especially in the case of longer-term contracts or changes in market conditions:
- For clients: Defense against unjustified price adjustment claims that are not covered by the contract and ensuring that contractually agreed prices are adhered to.
- For contractors: Enforcement of price adjustments if contractually stipulated price adjustment clauses apply or exceptional circumstances arise.
Poor performance
If the contractor fails to provide the agreed service properly, numerous legal and practical challenges arise:
- For clients: Enforcement of warranty claims, contractual penalties or compensation for damages in the event of defective performance. We also advise on the question of whether and under what conditions it is possible to withdraw from or terminate the contract.
- For contractors: Defense against unjustified complaints or claims for damages and enforcement of claims for rectification or replacement delivery, if contractually agreed.
Refusal to pay
Disputes about payment are among the most frequent conflicts that regularly arise in connection with disputes about poor performance:
- For clients: Checking objections to payment claims, for example in the event of non-contractual performance, and legally secure retention of payments.
- For contractors: Enforcement of payment claims, including through legal action, and defense against rights of retention or unjustified reductions.