We successfully represented Dutch companies in a dispute over a compensation claim. The Lithuanian Court of Appeal fully upheld the claim and recognised a foreign arbitral award (GAFTA) in Lithuania in favour of the client. The court ordered to compensate over EUR 500,000 for the company’s losses.
Debtor claimed they could not fulfil contracts due to force majeure
Our client experienced losses because of a debtor – a Lithuanian company – not fulfilling contracts signed by failing to deliver the agreed amount of agricultural products.
In the dispute, the debtor tried to defend themselves by referring to force majeure – they claimed that an emergency situation had been declared in Lithuania due to drought and farmers were not able to grow their crops. The debtor’s claims against the farmers regarding imposition of fines were rejected due to force majeure circumstances. Consequently, the debtor tried to prove that the arbitration award ignored force majeure and contradicts Lithuanian public order.
Our team representing the client
Our team, consisting of partner Kęstutis Švirinas, senior associate Aušra Gaurytė and associate Domantė Lunytė, represented the client during the arbitral award recognition process and provided legal services during the arbitration proceedings.