White & Case achieves victory for State of Baden-Württemberg in dispute with Deutsche Bahn over €7 billion additional costs for ‘Stuttgart 21’ infrastructure project

Global law firm White & Case LLP has successfully defended the German Federal State of Baden-Württemberg in an action brought by Deutsche Bahn to recover additional costs of the 'Stuttgart 21' (S21) infrastructure project, winning a clear victory in proceedings before Stuttgart Administrative Court.

"The court has clearly confirmed that Deutsche Bahn, as project sponsor, is solely responsible for the additional costs of the S21 project," said White & Case partner Henning Berger, who led the team which represented the State of Baden-Württemberg. "The negotiation clause does not automatically lead to an adjustment of the contract and consequently it does not oblige the state to increase its subsidies."

In its judgment on Tuesday 7 May 2024, the court ruled that the so-called 'negotiation clause' contained in the financing agreement does not mean that the state is obliged to contribute to the financing of further increases in the costs of the S21 project. The state government decided in 2011 that it would refuse to contribute to any additional costs above the agreed €4.526 billion cost ceiling and informed Deutsche Bahn of this at an early stage.

In the course of the legal proceedings which have been ongoing since late 2016, the state demonstrated that Deutsche Bahn bears sole financial responsibility for the additional costs in the S21 project.

The White & Case team that represented the State of Baden-Württemberg was led by partner Henning Berger (Berlin) and included partner Julia Sitter (Frankfurt), partner of counsel Oliver Habighorst (Frankfurt) and associates Mathilda Xu and Isabelle Peltier (both Berlin).

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