Our law firm has successfully represented a client (one of the defendants) in a civil case regarding the claim for damages, allegedly caused by members of a company’s management body. After hearing the case, the Court of Appeal of Lithuania upheld the judgment of the court of the first instance in favor of the client and rejected a claim of more than 3,3 million EUR.
In this case, the claimant tried to convince the courts that defendants concluded too risky and damaging transactions. Therefore, according to the claim and subsequent appeal, the defendants are liable for the losses incurred by the company.
In turn, our law firm based its position upon a well-known legal principle – business judgment rule and provided a wide range of arguments demonstrating that the defendants have not violated their fiduciary duties to the company. The decisions at issue were made in good faith and there was no conflict of interests. Besides, the main shareholder of the company – Vilnius City Municipality – endorsed all the investment transactions concluded by the defendants.
These arguments convinced the courts and both – the court of the first instance and the Court of Appeal of Lithuania – agreed that the defendants cannot be held liable for the losses incurred by the company.
Law firm “Motieka & Audzevičius” provides bold and customized solutions to the most complex legal issues in a global context.