The legal dispute comes after the government terminated a €2 billion+ contract with CTS company AutoTicket and didn't offer compensation
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The federal government unfairly terminated a contract with AutoTicket to collect traffic tolls in Germany
By Lisa Henderson on 06 Jul 2023
Germany’s federal government will pay €243 million to AutoTicket, a joint venture between CTS Eventim and Kapsch TrafficCom, to end an arbitral tribunal.
In 2018, AutoTicket secured a 12–15-year contract, worth more than €2 billion, from the ministry of transport to collect traffic tolls in Germany from autumn 2020.
It was to be the first time CTS Eventim’s technology was used outside the ticketing sector.
However, the government terminated the operating agreement, alleging “poor performance”.
AutoTicket disputed the decision in an arbitral tribunal, which involves a panel of unbiased adjudicators sitting to resolve a dispute between parties.
The arbitral tribunal has lasted three years and cost Autoticket “several million in procedural, legal and consulting fees”
The first phase of the two-stage tribunal found that the government was not allowed to unilaterally withdraw from the contract without compensation.
The arbitral award also rejected poor performance as a reason for termination, meaning AutoTicket was entitled to damages and reimbursement of expenses.
AutoTicket were originally seeking damages for €560m “for the lost profit, on the basis of a twelve-year operator contract” but all parties have now agreed on €243m.
“We thought a lot about the settlement proposal with our partners – rationally it’s a good decision for the company,” said Kapsch’s investor relations officer Marcus Handl in an interview with APA.
The arbitral tribunal has lasted three years and cost Autoticket “several million in procedural, legal and consulting fees”.
The current minister of transport, Volker Wissing, described the amount as a “bitter sum” and described the failed car toll as “a serious mistake”.
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