The Supreme Court of Lithuania upheld the claim of our client HSC Baltic regarding unreasonable inclusion in the List of Unreliable Suppliers. It obliged the Vilnius municipality to re-open the issue of the company’s reliability.
The decision in the case concerning the construction project for the Lazdynai swimming pool in Vilnius municipality was based on a clarification issued by the Court of Justice of the European Union (CJEU).
National legal regulation contradicts an EU directive
The CJEU noted that the inclusion of partners in a consortium in the List of Unreliable Suppliers published by the Public Procurement Service must be decided on an individual basis, considering the role of each partner and the degree of responsibility for the failure of the partners to perform the public procurement contract.
The Supreme Court of Lithuania recognised that the national legal regulation does not correspond to the EU legal regulation. The national court cannot apply a provision of national law that contradicts a provision of EU law.
When deciding on the inclusion of companies in the List of Unreliable Suppliers, the Vilnius municipality did not evaluate each consortium partner individually, and therefore is obliged to revise the issue.