Košice Court Orders Parking Operator EEI to Pay €6.14 Million

Košice Wins €6.14M Ruling Against Parking Operator EEI

The Košice municipal court has ordered parking management company EEI to pay the city approximately €6.14 million as compensation for unjust enrichment. The sum represents parking fees the company collected while operating under a rental contract the courts have since deemed void. The ruling, handed down on 17 June, is not yet final because EEI has lodged an appeal.

The dispute traces back to July 2012, when the city signed a ten-year rental contract with EEI to operate the paid parking zone. After years of public pressure and activist calls for the city to reclaim parking management, Košice filed a lawsuit in November 2018 to evict the company and claim back the fees it had collected. The city ultimately took over the parking system in 2019 under a new municipal bylaw, despite EEI’s objections.

In May 2024, Slovakia’s Supreme Court finally confirmed that the original contract was invalid because it had been concluded in violation of the law. The financial settlement now handed down by the municipal court covers the period from November 2014 to July 2022. It sets off EEI’s claim for €4.32 million against the city’s claim for €10.45 million, leaving a net liability of €6.14 million plus legal costs. The court also dismissed a counterclaim filed by EEI in December 2023.

What the Court Ruling Means for Municipal Parking Contracts

A Flawed Contract and Its Consequences

The original agreement between Košice and EEI granted the company exclusive operation of the city’s paid parking zones for a decade. The Supreme Court’s ruling that the contract was illegal from the start means all revenue EEI collected during that period effectively belonged to the municipality. The €6.14 million award is therefore not a penalty but restitution – the court’s attempt to undo the financial result of a void deal.

Financial Exposure for EEI

While the sum is significant, the company has the right to appeal, which will likely delay any payment for months or even years. Still, the Supreme Court’s unappealable declaration of the contract’s invalidity severely limits EEI’s room to argue that it was entitled to the parking fees. If the appeal fails, EEI will need to find liquidity to satisfy the judgment – a demand that could strain its finances, especially if it has already distributed or reinvested the disputed income.

Wider Implications for Municipal Services

The case exposes a growing appetite among Slovak municipalities to challenge long-standing public–private contracts that were concluded without proper legal foundation. Košice’s successful litigation, from voiding the contract to securing a substantial clawback, sets a precedent that other cities may follow. Parking operators, waste-management firms and other service providers with similar legacy agreements could face copycat lawsuits, especially where public dissatisfaction is high.

Next Steps for EEI and Other Municipal Contractors

• For EEI: The company should quantify its financial exposure and, if necessary, set aside reserves or negotiate a payment schedule with the city. Given the Supreme Court’s finality on the contract’s invalidity, exploring an out-of-court settlement before the appeal ruling might reduce further legal costs and reputational damage.
• For Košice: The city must prepare to actually collect the awarded sum, which may require enforcement proceedings if EEI does not pay voluntarily. Simultaneously, it should assess whether the current in-house parking management model can be made permanent or if a legally bulletproof tender for a new operator is needed.
• For other Slovak towns: Municipalities that still operate under long-term parking or similar service contracts signed before 2015 should urgently review those agreements for legal weak spots. The Košice outcome shows that early action – a declaratory court ruling followed by a financial claim – can recover significant public funds that would otherwise remain with private contractors.