Corona - Court: Bund must pay Masken-company 86 Million Euro
In a dispute with a mask supplier, the Bund (Federal Government) suffered a loss in court. The Bund was ordered to pay around 86 million Euros plus interest, according to the Cologne Higher Regional Court (OLG) (6 U 101/23). The company ILTS, which participated in an open tender in the spring of 2020 when the Bundesgesundheitsministerium (Federal Ministry of Health) promised high prices due to the Corona-Pandemic, received far more masks than anticipated from a multitude of dealers.
However, the Ministry later refused to accept a large portion of the goods. The Cologne High Court considered this action unjustified. The judgment could have a certain impact on similar cases that are still pending. It is not yet legally binding.
The Bundesgesundheitsministerium (Federal Ministry of Health) could face billions in costs in total. This puts pressure on the former Federal Health Minister and current opposition politician Jens Spahn of the CDU.
- Despite the loss in court, BMG (Bundesministerium für Gesundheit, or Federal Ministry of Health) is expected to incur significant costs due to the Coronavirus pandemic, potentially amounting to billions of Euros.
- The Federal government, including BMG, has been criticized for its handling of mask procurement during the initial phase of the Coronavirus outbreak in Germany, especially in relation to the OLG's ruling on the ILTS case in Cologne.
- The ILTS, a company that supplied masks during the spring of 2020 when the nation was grappling with the Coronavirus crisis, was initially promised high prices by the German government.
- The legal ruling against the Federal government in the ILTS mask supply dispute highlights the importance of contractual obligations and fairness during times of crisis, like the Coronavirus pandemic.
