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RASK represents local governments in litigation regarding financing of private schools.

Case

RASK represented several local governments in court in a dispute with the Estonian Ministry of Education and Research. The local governments demanded in court that the state compensate for the costs incurred by them in relation to the financing of private schools.

Among other things, the dispute was based on the Supreme Court’s decision dated 28 October 2014, where it is held that failure to adopt legal acts that would guarantee financing from the state budget for local governments to meet the financing obligation imposed by the Private Schools Act is unconstitutional.

The Supreme Court was of the opinion that according to the Constitution the financing of operating costs for private schools offering general education cannot be regarded as an obligation of local governments. In January 2016, the Supreme Court issued a judgment in favour of the City of Tallinn (3-3-1-41-15), ordering that the state should compensate the City of Tallinn for the damage sustained by the latter.

The Supreme Court judgment confirmed the case argued by Rask and, relying on this recent judgment, Rask advised its clients on concluding compromise agreements with the Estonian Ministry of Education and Research.