March 2025 - Kinstellar Romania is pleased to announce the successful representation of a leading provider of cash payment services in Romania in a dispute recently finalized before the Romanian Supreme Court of Justice.
This legally complex litigation stemmed from a high-value damage claim initiated by a former contractual partner, alleging harm as a result of our client’s lawful exercise of its legal and contractual rights. The case raised important Romanian legal questions regarding the limits of contractual rights and the broader implications of business decisions made within legally established entitlements.
Given the legal complexity of the case and the existence of related judicial proceedings, the litigation team of Kinstellar Romania designed a consistent litigation strategy to ensure alignment across all its three judicial stages. Despite the opposing party’s aggressive approach - including exaggerated claims - the Kinstellar Romania litigation team remained focused on safeguarding our client’s interests.
After successive victories before the Bucharest Tribunal (in the first court of instance), as well as the Bucharest Court of Appeal (in the appeal phase), the Romanian Supreme Court of Justice fully upheld our client’s position (in the second appeal phase), confirming the legality of its actions and dismissing all claims. This final ruling reinforces critical Romanian legal principles for commercial contracts and business conduct.
Background of the dispute
The dispute arose from a contractual conflict where the opposing party sought damages based on allegations that our client’s enforcement of its legal and contractual rights caused harm. The case involved:
- Key legal issues related to contract enforcement and liability;
- Related proceedings before the judicial levels of three Romanian courts requiring a coordinated legal strategy;
- Challenging litigation tactics from the opposing party, including high-value claims of alleged prejudice;
- Efforts to exert pressure through formal and informal channels.
Despite these challenges, the Romanian Supreme Court of Justice’s final ruling confirms that exercising legal and contractual rights does not constitute a valid basis for damages claims.
Key takeaways for businesses
- Contract clarity - Draft agreements with precise and unambiguous language to minimize the risk of disputes.
- Active contract management - Regularly monitor contract performance and take timely action to address breaches or non-compliance.
- Strategic exercise of rights - Assess the Romanian legal and commercial implications before enforcing contractual rights.
- Caution in pre-litigation communications - Maintain clear and consistent communication across departments to prevent conflicting positions.
- Importance of clear documentation - Well-documented agreements and decisions can be critical in securing a favourable judicial outcome.
How can Kinstellar help you?
There are times in business when you need agile litigation practitioners on your side.
Our very skilled Dispute Resolution team is committed to protecting clients in legally complex and high-value disputes. We provide strategic guidance and representation in:
- Commercial disputes - Ensuring business continuity and contract enforcement
- Cross-border litigation - Managing disputes with international elements
- Regulatory investigations - Advising on compliance and risk mitigation
If you are facing a dispute or require Romanian legal guidance, our team is here to assist.