ACTIONS CORNER
The Daimler-Chrysler merger in 1998 was based on appropriate evaluations, so that no compensation payments to former Daimler Benz shareholders are necessary. This was decided unappealably by the Stuttgart Higher Regional Court (OLG) in an administrative decision procedure that ended a legal dispute lasting twelve years. The 20th civil division chaired by OLG president Eberhard Stilz thus accepted a complaint by Daimler against an August 2006 ruling by Stuttgart Regional Court. It saved Daimler a payment totaling €230 million to its former shareholders applied by the court of first instance.
Deutsche Bank has had another of its innumerable court actions against Leo Kirch decided in its favour. Frankfurt Higher Regional Court (OLG) found the resolutions of the 2007 AGM effective almost completely. The actions for avoidance and nullity against resolutions had remained “overwhelmingly unsuccessful” on appeal too, it was stated in a court announcement on 20 October. The decisions giving discharge to the board and supervisory board for 2006 were declared null and void. The bank need not set aside any reserves for possible damage payments.
In the case over risky interest transactions with sewage group Mariatal, Deutsche Bank had to accept defeat in Stuttgart Higher Regional Court (OLG). In a judgment on 28 October, the OLG allowed the group of municipalities full compensation for faulty advice by the bank. The court saw no misconduct by the opposite side and sentenced the bank to a €710,000 fine. The lower-court verdict by Ulm Regional Court in favour of the bank was thus set aside. Deutsche Bank announced it would appeal.
Deutsche Telekom has failed in its attempt to defend against an administrative fine for abusing its market position between 1998 and 2003. The European Court of Justice on 14 October confirmed the EU Commission’s decision of 2003 and the European Court judgment of 2008 in first instance for abuse of dominant position on the markets for fixed-line telephone services by Telekom, also confirming the penalty of €12.6 million imposed on it. The former monopolist had demanded higher fees for the last mile from its competitors than from its own end customers.
The dispute between Deutsche Telekom and T-Online minority shareholders suing it is now to go before the Federal Constitutional Court. The shareholders should receive a higher compensation payment. The Dreier Riedel law firm lodged a constitutional complaint to this effect on 18 October against the ruling by Frankfurt Higher Regional Court (OLG). In the law firm’s view, investors had received too little compensation. In early September the OLG had confirmed a decision by Frankfurt Regional Court finding an extra payment of €1.15 plus €0.23 interest per T-Online share appropriate.
In the action about the spying case at Deutsche Telekom, Kai-Uwe Ricke testified in Bonn on 22 October, contradicting several statements by the main accused that heavily incriminated him. Klaus T. had testified that the ex CEO had been informed of the utilization of journalists', and works council and supervisory board members' telephone connections. Public prosecutors at the time suspended investigations of Ricke. Telekom has announced it will ask for compensation of some €1 million each from Zumwinkel and Ricke.
The Federal Court of Justice has freed Wilhelm Schelsky of the charge of breach of trust, thus partly accepting the appeal by the ex head of employee organization AUB. Schelsky’s lawyer had repeatedly stressed that the lack of financial checks by the Siemens board on consultants' fees ought not to be counted against Schelsky. However, the whole case did not need to be reopened before Nürnberg-Fürth Regional Court, but merely the amount of penalty re-calculated. Schelsky’s conviction for fraud and tax evasion in November 2008 remained untouched.