A case regarding annulment of contracts

Our Dispute Resolution team has successfully represented a client – one of the largest companies engaged in agricultural products processing – as defendant in a civil case regarding annulment of contracts and claim for damages. The Court of Appeal of Lithuania repeatedly heard the case and upheld the judgment of the court of first instance in favour of the client.

In this case (brought by the claimant’s insolvency administrator), the claimant requested for damages amounting to more than 3 million EUR (10 million Lt) to be paid jointly and severally by the client and the former claimant’s insolvency administrator.

In the course of legal proceedings, the insolvency administrator tried to demonstrate that contracts concluded between the claimant and the client caused losses for the insolvent company. However, the court of appeal agreed with Motieka & Audzevičius position in this case and stated that the claimant failed to meet his burden of proof.

Accordingly, the national courts in this case further developed case-law regarding actions for damages brought by insolvency administrators and rules governing the burden of proof in this category of cases.