Setterwalls turned loss into win in the case between the Swedish Public Employment Service and CGI in the Svea Court of Appeal

Yesterday, judgement was delivered in the case between Swedish Public Employment Service and CGI. The Court of Appeal changed the District Court’s judgment where the Swedish Public Employment Service was not considered to have had reason for its immediate termination of its agreement with CGI. The Swedish Public Employment Service was therefore ordered to pay SEK 25 million in damages and nearly SEK 13 million in compensation for CGI’s legal costs.

However, the Court of Appeal found that the Swedish Public Employment Service had had the right to immediate termination of the agreement with CGI. Yesterday, the Court of Appeal ordered CGI to repay its received compensation and pay liquidated damages for the delay caused by CGI. In total, CGI is to pay the Swedish Public Employment Service nearly SEK 20 million and SEK 8,5 million in legal costs.

The case concerned a registration and document management system that CGI was to deliver to the Swedish Public Employment Service as a part of the Swedish Public Employment Service’s digitisation initiative. According to the Court of Appeal, CGI’s system did not meet the agreed requirements for performance and authorisation control and after four attempts to deliver the system, the delivery was so delayed that the Swedish Public Employment Service had the right to terminate the agreement with immediate effect.

Setterwalls represented the Swedish Public Employment Service in the Court of Appeal. Setterwalls’ team consisted of Hans Dahlberg Kolga, Jörgen Axelsson, Niclas Martinsson and Hedda Runestam.