Our team defended the interest of the client by protecting the judgment of the Court of first instance in which it had been decided that an unprofitable contract is null and void and thus the counterparty has an obligation to return over 1 million euro to the client.
The case concerned stock transactions where the insolvent company had brought a claim against a former shareholder of the company. The client had requested the Court declare the stock purchase agreement signed by the insolvent company and former shareholder as null and void. The main areas of dispute in the case were the date of the beginning of the economic crisis in the construction sector in Lithuania and whether the counterparty had been honest under the case circumstances while selling the owned stocks.
A thorough economic analysis was prepared in order to determine the moment of the beginning of the crisis and its influence on the profitability of the disputed contract.
The Court of first instance declared the contract null and void. The Court of Appeals supported the arguments of our lawyers and approved the conclusions of the Court of first instance.