Fylgia has achieved a significant legal victory before the Swedish Supreme Court (Högsta domstolen), clarifying the jurisdictional rules for compensation claims related to the termination of commercial lease agreements. The Court confirmed that disputes over compensation under Sweden’s indirect security of tenure fall within the scope of tenancy matters, and should be heard by the fastighetsforum – the court where the property is located.

This landmark decision provides greater legal certainty for both landlords and tenants operating in the Swedish commercial property market. With this ruling, Fylgia reinforces its expertise in real estate law and lease litigation, particularly in complex matters involving jurisdiction and statutory interpretation.

Fylgia has successfully acted for a client before the Swedish Supreme Court (Högsta domstolen) in a landmark case concerning jurisdiction in disputes arising from the indirect protection of possession under the Swedish Land Code (Jordabalken).

The central issue was which court has jurisdiction to hear a claim for compensation resulting from the termination of a commercial lease agreement, where the tenant benefits from indirect security of tenure. The claim was brought before the so-called fastighetsforum – the district court in whose jurisdiction the property is located – in accordance with the general rule for disputes relating to rights of use over real property.

However, both the District Court and the Court of Appeal rejected the claim on the grounds that the compensation issue lacked sufficient direct connection to the lease itself.

The Supreme Court disagreed and held that such a dispute is, in procedural terms, a tenancy matter, directly related to the lease relationship. In its reasoning, the Court emphasised the wording of the statute, the practical aspects of taking evidence, and the systematic interpretation of the legal framework. It confirmed that the correct forum was indeed the fastighetsforum.

This decision provides welcome clarity and legal certainty for landlords and tenants involved in commercial lease disputes in Sweden.

Fylgia has extensive experience in commercial lease law, particularly in pursuing compensation claims related to termination of commercial leases.