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A court of appeal confirmed today the rejection of the City of Prague’s action against Copa Retail regarding the entitlement in the dispute over the amount of the rent for the Škoda Palace building. In addition, the court of appeal ruled about the costs of both trials in favour of the defendant.

“For two and half years, the City of Prague has been involved in a lawsuit against us over the amount of the rent it pays for Škoda Palace. But the court has already dismissed two actions filed by the City and the City did not succeed again today,” says Abigail Schaeffer, Member of the Board of Directors of Guyana Holdings, the majority owner of Copa Retail, the company that owns Škoda Palace.

Copa Retail’s offer for a discount of half a billion from the total rent for the building has been in existence since last July. The City Hall refused the offer. The discount can be applied only on the future rent, not retroactively. This means that as time passes, the total discount offered is decreasing. Instead of an agreement and the resultant reduction in the rent, the City is losing CZK 135,000 every day.

“Prague set up a special workgroup for negotiations with the owners of Škoda Palace, but it never invited us for a discussion during the 154 days of its existence. We have repeatedly publicly declared our interest in maintaining an open dialogue with a view to resolving the dispute, but the dispute persists,” concludes Schaeffer.