The dispute market overview notes that slightly more first-instance cases were filed in Estonian courts last year than in previous years. The number of civil, misdemeanor and administrative cases rose, while criminal cases declined by 5 percent.

"What's clearly evident is that larger and more complex proceedings are becoming significantly slower. A first-instance ruling can take anywhere from three to five years. This trend opens the door for the development of arbitration, as such lengthy proceedings are not viable from a business perspective," said Cobalt partner Annika Peetsalu and managing partner Jaanus Mody.

There was a growing number of cases concerning management liability, including newer claims involving companies owned by the state.

The report also notes that entrepreneurs are not afraid to take legal action against the state and do not view it as unbeatable. As a result, Cobalt predicts an increase in such disputes in the coming years, which would help clarify when and for what the state can be held liable.

In criminal law, questions surrounding the ambiguity of procedural restrictions and the actions of the Prosecutor's Office are becoming increasingly relevant. Changes to the Competition Act may also lead to a rise in supervisory and misdemeanor proceedings, along with associated fines.

Record data protection fine ordered in 2025

Last year marked a turning point in the field of data protection, as Estonia's largest-ever data protection fine was issued. The Data Protection Inspectorate (AKI) fined Allium UPI, the company managing the Apotheka pharmacy chain's loyalty program, a record €3 million after inadequate data protection measures allowed unauthorized access to the personal data of more than 750,000 individuals.

"There was also a noticeable rise in the number of data breach notifications submitted to the Data Protection Inspectorate pointing to increased regulatory activity and growing data protection risks," said Liina Jents, Cobalt's co-head of intellectual property, IT and data protection.

Among the most significant cases, Cobalt cited the dispute between Asper Biogene and the Data Protection Inspectorate. AKI imposed an €85,000 fine on the genetic testing company after nearly 100,000 files containing genetic and health data were leaked.

However, the district court dismissed the case citing a lack of legal elements constituting a misdemeanor and the Supreme Court declined to hear AKI's appeal. As a result, the district court's ruling to annul the fine and terminate the proceedings became final.o

Another noteworthy case involved Äripäev and Balti Meediamonitooringu Grupp, in which the Supreme Court examined whether the use of copyrighted works by a media monitoring company falls under the fair use exception in the Copyright Act. The Supreme Court did not issue a final ruling and instead sent the case back to the Tallinn Circuit Court for further review.

"The outcome is significant for media monitoring companies as their services inherently involve the technical processing of copyrighted works. The Supreme Court's clarification will determine when such use is permitted without the rights holder's consent or compensation and when it is not," the report stated.

Competition proceedings on the rise

Last year, Estonia transposed a European Union directive aimed at streamlining procedures for investigating competition law violations. According to the overview, the directive gives the Competition Authority broader powers to conduct supervisory proceedings.

"It's still too early to assess the full impact of the legislative changes, but we can expect an increase in supervisory and misdemeanor proceedings likely ending in larger fines than companies have been accustomed to," said Cobalt partner Rauno Ligi.

The Competition Authority's efforts to combat unfair trading practices also drew significant media attention last year. Supervisory proceedings involving various retail companies and dietary supplement wholesalers were highlighted, while in other matters, such as non-recruitment agreements between football clubs and the acquisition of Forum Cinemas theaters, the authority closed the cases without imposing penalties.

Among the most notable cases, Cobalt pointed to the dispute involving Alexela, Eesti Energia and Elektrum Eesti against the Competition Authority and Elering following the authority's approval of TSO Elering's methodologies for procuring reserve capacity.

"These disputes stem from Estonia's decision to disconnect from the Russian power grid in February 2025. In the short time since, both the relevant legislation has been amended and four separate methodologies have already been approved, which in itself suggests that the regulatory framework has been inadequate," the report noted.

Hidden faults lead to spike in real estate disputes

In the area of construction and zoning disputes, infrastructure-related cases last year largely revolved around the implementation and fulfillment of contracts for major infrastructure projects — chiefly Rail Baltica. In contrast, disputes involving residential real estate primarily focused on construction quality and adherence to budgets and deadlines.

Real estate defect cases also remained relevant and according to the law firm, a noticeable trend is that buyers are increasingly invoking the concept of hidden defects to file questionable claims for damages against sellers.

Zoning disputes have frequently centered on conflicts between local governments and renewable energy developers regarding decisions not to initiate zoning procedures or to terminate them prematurely. These cases often hinge on whether there is a sufficiently overriding public interest justifying a municipality's refusal to launch or continue the planning process.

Among last year's landmark cases, Cobalt highlighted a precedent-setting dispute between private individuals and construction firms Mapri Ehitus and Lubja Kodu. In an unprecedented move, apartment owners filed a non-contractual claim directly against the builder after their apartment building began to sink significantly several years after completion, rendering it unsafe for habitation.

Although the court did not determine the exact cause of the building's subsidence, the construction company agreed to a settlement in the interest of legal peace. Under the agreement, the sinking apartment building will be demolished and replaced with a new one.

Era of blanket litigation over defamation ending

In the realm of media disputes, two key trends emerged last year. First, the era of blanket lawsuits for defamation appears to be coming to an end. While past court practice tended to favor the protection of individuals claiming reputational harm, recent Supreme Court rulings signal a shift: not every published factual inaccuracy or negative opinion now results in an award of damages.

Second, the scope of media-related disputes has expanded. While cases involving the protection of honor and good name remain, there has been a marked rise in cases concerning the right to privacy and family life. These disputes now extend beyond traditional journalism to include content published on social media, in emails and in broadcasts.

"A major challenge lies in setting effective legal boundaries on hate speech, conducting parallel trials via social media and the systematic trolling of individuals. Under current court practice, it is questionable whether personal rights are being effectively protected in Estonia," said Cobalt's media law head Kadri Michelson and attorney Anna-Riin Brett.

Among the most notable cases, the law firm highlighted the dispute between Alexela, Heiti Hääl and Delfi Meedia, which stemmed from the publication of false factual claims about the company and its owner along with a public call to boycott Alexela gas stations. The district court partially upheld Hääl's claim, but the ruling has been appealed and proceedings are ongoing in the circuit court.

Cobalt also pointed to the ongoing dispute between influencers Brigitte Susanne Hunt and Mallu Mariann Treimann. Although the case has yet to be resolved, it is expected to set an important precedent regarding the balance between privacy rights and freedom of expression for social media personalities.

Attempts to resolve disputes via social media

In family and inheritance law disputes, a growing trend has emerged: parties increasingly turn to social media to gain public support, attempting to resolve their cases in the court of public opinion rather than in a court of law.

Those involved in such disputes have also begun targeting judges, opposing attorneys, bailiffs and others connected to the case. While public discourse can help highlight shortcomings in the legal system, the law firm views this development as a dangerous trend.

"Social media creates fertile ground for inciting hatred and presenting one-sided, often misleading narratives. Public debate around a case frequently leads to defamation suits and other related claims," noted Annika Peetsalu and Kadri Michelson.

The highest-profile case last year was the multi-faceted Heinmets-Aigro dispute, centered on child custody issues.

Peetsalu and Michelson pointed out that this case has raised several important legal questions whose eventual resolution could help shape and advance practice in the field, though regrettably at the cost of one family's personal tragedy.

The number of bankruptcies last year was similar to 2024, with most occurring in the trade, manufacturing, real estate and construction sectors. Bankrupt companies cited high input costs and weak demand as primary challenges. However, the law firm continues to observe a significant number of cases marked by poor business conduct.

"These include well-known schemes in which debts are left with one company while the business is moved to another, as well as simpler cases involving a failure to submit basic accounting data," explained Peetsalu and attorney Heivo Reinek.

Among the most notable bankruptcies, Cobalt highlighted the declaration of bankruptcy for savings and loan association Erial, the ongoing travel agents Kon Tiki Reisid bankruptcy proceedings, where the Consumer Protection and Technical Regulatory Authority has even filed a criminal complaint, and the bankruptcy of meat processor Saaremaa Lihatööstus.

Automatic removal of companies from register problematic

In corporate law disputes, special audits and evaluations of board member liability in several state-owned companies drew attention last year. Questions of board member responsibility have also become more frequent in private enterprises, largely due to the economic instability caused by the COVID-19 pandemic and the subsequent war in Ukraine.

"Still, damage claims against board members typically reach the courts only in cases where a member has used company assets for personal gain or the company has gone bankrupt," explained Cobalt partner Annika Peetsalu and corporate law practice head Kristina Schotter.

Another growing issue involves the automatic deletion of companies from the register for failure to submit annual reports.

"Creditors have limited tools to 'revive' such companies and court practice on how to assert rights in these cases is still developing," noted Peetsalu and Schotter.

Disputes among company shareholders have largely focused on dividend distribution, procedures for convening meetings, information requests and violations of voting rights restrictions.

"The Supreme Court ruled that failure to elect a chair or minute-taker at a meeting does not constitute a breach of law, a decision that could significantly impact how voting rights restrictions are correctly applied — an important consideration when deciding on potential damage claims," Cobalt's representatives stated.

Among the most notable cases in this field, Cobalt highlighted the dispute between Baltic Sea Bunkering owners Sergey Pasters and Aleksei Tšulets concerning management decisions at both parent and subsidiary levels, including alleged damages in the tens of millions of euros. The court has since declared NT Bunkering bankrupt, affirming that joint representation rights at the parent company level do not prevent a bankruptcy petition for the subsidiary.

Cobalt also emphasized the long-running shareholder dispute within BLRT Grupp as a landmark case. The nearly 15-year legal battle within the largest industrial group in the Baltics, active in shipbuilding, produced a wealth of case law and ultimately concluded with a settlement involving the buyout of minority shareholders.

Prosecutor's Office prioritizing crimes against the state

In the area of criminal cases, Cobalt noted that the Prosecutor's Office appears to prioritize proceedings involving crimes against the state — particularly fraud and corruption. The law firm expressed concern that crimes affecting private-sector companies and their owners are not given equivalent importance.

Among the most notable cases, the report highlighted the investigation into Baltic Workboats, which faces allegations of subsidy fraud and tax evasion. While one episode has been closed, the pretrial investigation continues in other parts of the case.

Other cases of interest include the ongoing pretrial investigation into the alleged illegal financing of the Isamaa party, as well as the criminal proceedings involving senior police officials Eerik Heldna, Elmar Vaher and Aivar Alavere. All three were acquitted by every level of the court system.

In administrative disputes, the majority of court cases dealt with public order issues, including complaints from prison inmates. There were also many cases related to social law, such as health insurance and pensions, as well as population-related matters, including citizenship and refugee issues.

The law firm considered particularly significant the order by the Political Parties Financing Surveillance Committee (ERJK), which instructed four political parties to return a prohibited donation from the Liberal Citizen Foundation (SA Liberaalne Kodanik). The parties have challenged the order in court and a ruling is expected this year.

Also of note was the dispute between Lääneranna Municipality and parents over the legality of closing Metsküla Elementary School and converting Koonga and Varbla schools into six-grade institutions. The Supreme Court ultimately annulled the municipality's decisions and ordered it to reimburse the parents' legal expenses.

Complaints by environmental associations on the rise

Public procurement disputes are typically resolved by the Public Procurement Review Committee (VAKO), which last year received 299 challenges, of which 98 were dismissed without review. The most common point of contention involved the awarding of successful bids.

In the area of environmental disputes, attention last year focused on developments related to the EU Green Deal and the Climate Act.

"In line with the rising relevance of environmental and climate issues, environmental organizations in Estonia have become significantly more active in recent years. They are voicing opinions in public and on draft legislation, participating in planning and permit procedures and seeking to block new development projects and industry more broadly on various grounds," said Cobalt partner Rauno Ligi.

He added that while the goal may be commendable, environmental groups sometimes file lawsuits that, in reality, should not be heard in court. Ideological questions of environmental and climate policy, he said, should be addressed through policymaking and legislation — not litigation.

"Similarly, courts should take a more critical approach to the currently broad interpretation of standing. This issue has become especially important now that even ordinary court disputes can drag on for three to five years or more. Simply the time lost to litigation can be enough to kill a specific project," Ligi noted.

One of last year's landmark cases was the dispute between the NGO Loodusvõlu and the Environmental Board. The administrative court ruled that Enefit Industry's oil plant complies with current legal norms and climate goals and that the precautionary principle in environmental law does not override other generally recognized principles of the rule of law.

Cobalt compiled the overview based on professional experience and publicly available data, emphasizing that the report is not exhaustive.

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