Disputes with agents
AD S.r.l. and Media & Sport S.a.s., for which the company has requested ascertainment and of the already completed termination of the contracts and of ruling requiring the agents to pay damages due to their breach of contract, the appraisal for the compose edition of the expert witness reports ordered by the judges have been concluded and disputed by Grandi Stazioni. Currently there is a risk that the company will lose the case and therefore the allocation made in the previous period has been maintained.
Vidion S.r.l. 2009-2010 arbitration ruling
The expert witness report has been issued for the two arbitration process is brought by Vidion s.r.l. in 2009 and 2010 the purpose of which were the presumed non compliance is of Grandi Stazioni insofar as the obligations undertaken with the association in participation the agreement concluded on 19 February 2007. The two arbitration proceedings took place on 25 July 2011. The expert witness report was submitted in December. Currently, the risk of losing the case appears in regard to certain issues to be probable while in regard to certain others in appears to be possible, and therefore the allocation made in the previous period has been kept.
Ingenium Real Estate S.p.A. Ruling
With regard to the injunction proceedings brought by Ingenium Real Estate S.p.A. in order to obtain compensation allegedly in relation to the execution of engineering services pursuant to the contract concluded on 20 April 2006 and in relation to the supplementary agreement of 25 May 2006, the judge did not accept the plaintiffs’ request to grant provisional execution. Negotiations are underway for an out of court settlement of the dispute. At the end of December the dispute was settled through the payment of an overall amount equal to Euro 415,347.64 which had already been set aside under liabilities.
Retail Group S.p.A. Arbitration
The expert witness report has been submitted to in the arbitration brought by Grandi Stazioni in July 2010 against Retail Group S.p.A., to ascertain the latter’s non-compliance with the obligations ensuing from the rental contract signed on 18 December 2002 and for termination of the rental contract itself pursuant to article 1454 of the Italian civil code.
CBS Outdoor Ruling
CBS Outdoor Holding, the former concessionary for advertising in the railway stations managed by the company, appealed the ruling no. 240045/2009 with which the court of Rome had dismissed the claims of the aforementioned company which aimed to obtain a ruling against Grandi Stazioni and compensation from it for a civil wrongdoing relating to the failure to pay certain advertising commissions amounting to approximately Euro 7 million, and the plaintiff was required to pay two-thirds of the costs of the trial while the remaining one third is to be paid to jointly by the parties.
Grandi Stazioni was present at the appeal hearing; no potential contingent liabilities are expected.
RomArtifico Ruling
In his ruling of 5 May 2011, the court of Rome upheld the position of Grandi Stazioni in regard to the termination of the association in participation agreement of 19 April 2002 with
RomArtificio and ruled that the premises occupied in the Termini station of Rome be returned and various amounts be paid totalling Euro 125,677.11 in addition to compensation for noncompliance and the release of the property.
The judge dismissed both of the compensation request brought forth by Grandi Stazioni and the counterclaim brought by RomArtificio to obtain compensation for damages of amounting to Euro 16 million. Furthermore, Grandi Stazioni’s application to obtain payment of certain contractual amounts from RomArtificio equalling approximately Euro 150 thousand was also dismissed. We are currently assessing whether to appeal this ruling.
Disputes with employees at the Naples offices
In its sentences rendered on 23 March 2011, 9 May 2011 and 23 June 2011, the Court of Naples accepted the appeals of three of the company’s employees aiming to obtain cancellation of their terminations which were announced by the company in June 2010 following the discovery of serious irregularities in regard to the ways they were using their company badges, with the consequent reinsertion into their work positions and the compensation of damages incurred. Grandi Stazioni appealed the sentences.
In regard to a similar lawsuit brought by another employee, an out of court settlement was reached on the basis of a legal settlement dated 25 May 2011 according to which the employee accepted the termination of the employment relation.
The previously established fund amounting to Euro 124 thousand was used for all the above.
Disposals of equity interests
In regard to the disposal of the equity interest in Network Italia Edicole srl which took place in 2009, no request has been received for compensation and the delivery of the spaces took place as provided by the contract. Therefore, the provisions established in the previous year for this purpose were decreased.
Appeal regarding the call for tenders for executive planning and executive interventions for the functional adaptation of the station buildings and complementary infrastructure works for the railway stations of Venezia S. Lucia, Venezia Mestre and Verona P. Nuova
With the appeal served on 20 October 2010, CIR S.p.A. appealed to the Council of State against this sentence with which the Administrative tribunal (TAR) of Lazio had dismissed the company’s appeal, following the evidence brought on examination of the second awardee pursuant to article 140 of Legislative Decree 163/2006, for awarding of the contract for the executive design and execution of the functional interventions for adaptation of the station buildings and complementary infrastructure works for the railway stations of Venezia Santa Lucia, Venezia Mestre and Verona Porta Nuova, including the execution and maintenance of the works and installations of the station buildings, to ATI CMB-Fatigappalti S.p.A.
The appeal does not include a stay order. Grandi Stazioni submitted an official memorandum of appearance on 2 November 2010. The hearing date has not yet been set. The risk of losing is not probable.
With its summons served on 21 October 2010, Mucciola Piero S.p.A. brought a lawsuit against Grandi Stazioni before the Court of Rome to obtain payment of approximately Euro 121,000, plus interests and revaluation as compensation for the “caro ferro” [price revision] pursuant to article 26, paragraph 4 bis of law 109/1994 for the higher expenses incurred in the period from 2004 to 2007 while executing the tender contract concluded on 16 December 2004 regarding the functional adaptation of building D in the Roma Termini station.
The first hearing, listed in the summons for 21 February 2011 was postponed to 24 March 2011 and the risk of losing does not appear probable.