We successfully represented the insolvent credit union Taupkasė (bankruptcy administrator – Klaipėdos administratorių biuras) in a case over recognising a share as a deposit. The claimant, who was granted a loan by the union, sought to nullify the transaction of purchasing a union share as resulting from a mistake and asked the court to recognise the transaction as a deposit. The court ruled in favour of our client and dismissed the claim.

Court rejects argument based on mistake by claimant

The claimant sought to prove that he had understood that a share would undoubtedly be repaid or set off against the last instalment of the loan. Since bankruptcy proceedings were brought against the union, no such possibility arose. The claimant alleged that the union had misled him – they did not disclose the essence of a share and the fact that such a situation would occur in the event of insolvency. The court dismissed the action and observed that the applicant, a young person with higher education, could not have confused a share with a deposit.

Our team representing the client

The client was represented by partner Kęstutis Švirinas, senior associate Kazimieras Karpickis and associate Greta Kubiliūnaitė.