St. Peter/Kammersberg
Financial consultant fails with lawsuit against municipality
A Viennese financial consultancy firm sued the Upper Styrian municipality of St. Peter am Kammersberg for not implementing proposed savings measures and not paying a fee - and failed in the court of first instance in Leoben. One of the reasons for the ruling is remarkable.
The case dates back to 2019 and has been before the court since last year: it concerns Kommunalberatungs GmbH, which identified potential savings for St. Peter am Kammersberg (Murau district) six years ago. The municipality has been struggling with financial problems for years.
The company accused the municipality of not having implemented the proposed measures and even spoke of a "waste of taxpayers' money". Furthermore, no fee had been paid. The company therefore wanted to sue for 33,000 euros plus interest.
Just a "milkmaid's bill"?
The municipality, on the other hand, took the view that the company's offer was free of charge. It was represented in court by lawyer, municipal treasurer and SPÖ top candidate Günter Novak-Kaiser. He speaks of "milkmaid calculations" by the company. New loans would have had to be put out to tender and approved by the municipal supervisory authority anyway.
The lawsuit has now been dismissed at first instance. One of the reasons given by the judge was that a municipal council resolution would have been required. However, only ÖVP mayor Herbert Göglburger signed the contract at the time. The municipality was therefore not bound by the contract. And the company's proposals did not prove to be successful for the municipality.
Financial services provider goes to second instance
According to ORF, the financial services provider does not want to accept the ruling and will fight it in the second instance. A court-appointed expert confirmed that the municipality could have achieved 100 percent of the savings proposed by the consulting firm.
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