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Eversheds win in the Swedish Court of Appeal for SEB Trygg Liv

  • Sweden


    In a judgement of 27 February, 2015, Svea Court of Appeal has ordered Svensk Vårdförmedling AB (Vårdförmedling) to pay app. SEK 4,8 million plus interest and costs amounting to app. SEK 1,3 million to Fondförsäkringsaktiebolaget SEB Trygg Liv (SEB Trygg Liv), represented by attorneys Magnus Andrén and Hans Forssell of Eversheds Stockholm. Doing so the Court of Appeal quashed the previous judgement of the Stockholm District Court, which instead had awarded SEK 2,1 million plus interest and costs to Vårdförmedling.

    The dispute concerned the premature termination by SEB Trygg Liv of a cooperation agreement with Vårdförmedling, under which SEB Trygg Liv was entitled to share the profit gained in Vårdförmedling. In negotiations between the parties regarding what compensation SEB Trygg Liv would have to pay to Vårdförmedling due to the premature termination SEB Trygg Liv discovered that the owners of Vårdförmedling during several years had invoiced Vårdförmedling considerable amounts without cause, amounts which had reduced the profit in Vårdförmedling to the detriment of SEB Trygg Liv. SEB Trygg Liv therefore retroactively cancelled the agreement for breach and claimed its share of the recalculated true profit.

    Originally Vårdförmedling claimed compensation for the premature termination at an amount of SEK 19 million under two separate contracts. However, the other contract contained an arbitration clause, and the claim under that contract – SEK 8 million – was dismissed by the District Court for lack of jurisdiction. Thus, the remaining claim of Vårdförmedling was SEK 11 million.

    The District Court held that Vårdförmedling was entitled to reduce its profit also with respect to the questioned invoices and therefore rejected SEB Trygg LIV’s cancellation for breach. However, the District Court also reduced the claim of Vårdförmedling for lack of proof of a greater loss than SEK 2,1 million.

    The Court of Appeal on the other hand upheld the cancellation for breach and awarded profit sharing in accordance with the claim of SEB Trygg Liv, apart from a small reduction for VAT. As SEB Trygg Liv, apart from this small reduction, was completely successful in the Court of Appeal, it was awarded full compensation for its litigation costs in accordance with Swedish law.

    SEB Trygg Liv is represented by Magnus Andrén and Hans Forssell at Eversheds Stockholm. The Court of Appeal 27 February 2015 case No T 1673-14.


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