Sarbu Partners has obtained a final and binding favourable judgment in a complex dispute concerning payment under a public procurement contract.
Contractual Background
The contract provided for suspension of payment until the approval and reimbursement of financing from European Structural Funds. In this context, the contracting authority postponed payment, invoking the alleged non-fulfilment of financing-related conditions.
Our team successfully presented the legal criteria applicable to the interpretation of a contractual clause making payment conditional upon a future event (a suspensive condition), as well as for the correct legal classification of the events stipulated in the clause and for the applicability, in such contracts, of the provisions of Government Emergency Ordinance No. 40/2015 regarding public procurement award procedures that include suspensive clauses, and the mechanism for accessing and reimbursing financing through EU Structural and Investment Funds programs.
Court Decision
The court fully upheld the client’s claims, ordering the contracting authority to pay the contractual amount together with statutory default interest (late payment penalties). The court confirmed that the mechanism of a suspensive condition cannot be used to indefinitely postpone or permanently block the obligation to pay the contract price.
Legal Team
This outcome reaffirms Sarbu Partners’ ability to promptly identify contractual deadlocks and to ensure effective protection of clients’ rights in complex commercial litigation.
“This dispute highlights the significant risks that suspensive clauses may generate for economic operators if they are not properly applied. An apparent postponement may in fact conceal a refusal to perform contractual obligations.”
Managing Partner Eugen Sarbu
The team handling the case consisted of Eugen Sarbu and Tasiana Timofticiuc, attorneys with extensive experience in public procurement law, construction law, and EU-funded projects.
About Sarbu Partners
Sarbu Partners is a Romanian business law firm specialising in commercial arbitration, complex commercial litigation, construction law, and public procurement.
We assist both domestic and international clients in situations where contractual deadlocks or suspension of payments may generate financial and operational risks, providing efficient strategic solutions tailored to the client’s business context.
Contact
If you are facing a similar situation and require legal assistance under Romanian law tailored to your specific needs, you may contact us at: office@sarbupartners.ro.
