Icelandic State Acquitted of Impregilo’s Charges Skip to content

Icelandic State Acquitted of Impregilo’s Charges

The Supreme Court of Iceland acquitted the Icelandic state yesterday of charges by the Italian contractor Impregilo.

Kárahnjúkar. Photo by Páll Stefánsson.

The contractor demanded repayment from the state for collecting too much money in taxes and tariffs for the salaries of Portuguese laborers, who were hired by temporary work agencies to help construct the dam at Kárahnjúkar.

The Reykjavík District Court had earlier ruled in favor of Impregilo, that the Icelandic state should repay ISK 1.23 billion (USD 9.5 million, EUR 7 million) and ISK 600 million (USD 4.6 million, EUR 3.4 million) in penal interest, Morgunbladid reports.

However, the Supreme Court ruled that the right amount of money had been collected.

Impregilo also demanded compensation for the financial damage the company suffered. The Supreme Court agreed that the Icelandic state violated Impregilo’s rights by forcing it to take an interposition in the payment of the salaries of the Portuguese workers.

Yet the Supreme Court ruled that Impregilo’s executives had neglected their duty to limit the financial damage to their company and thus they had forfeited their right to compensation.

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