A foreign company represented by our team won a case concerning recognition of a foreign arbitral award in Lithuania.

Debtor claimed that damages were punitive

A dispute over implementing a sale and purchase agreement between the company and its debtor was resolved by a foreign arbitration tribunal in favour of the company.

After the company initiated the process for recognition of the arbitral award in Lithuania, the debtor sought a declaration that the arbitral award was invalid in Lithuania. He alleged that the amount of damages awarded should be recognized as punitive, which contradicts the rules in Lithuania and can be considered as a basis for refusing to recognise an arbitral award under the New York Convention because of breach of public order.

The Lithuanian Court of Appeal rejected the debtor’s arguments and clearly defined the boundaries of Lithuanian public order and its jurisdiction in such cases.

Our team

The client was represented by partner Kęstutis Švirinas with associates Aušra Gaurytė and Domantė Lunytė.