Arbitral Award Enforcement before the Supreme Court of Lithuania

Motieka & Audzevičius acted as co-counsel together with Crowell & Moring LLP, based in Washington, in an investor-state arbitration. The firm represented the Italian wine producer Luigi Bosca in a dispute against the Republic of Lithuania conducted under the UNCITRAL Arbitration rules. On 17 May 2013, the arbitral tribunal issued an award in favour of Mr Luigi Bosca in which it was declared that the Republic of Lithuania had breached its obligation to grant just and fair treatment to the claimant.

This investor-state arbitration case marks a landmark decision for the Republic of Lithuania as the first case in the legal history of Lithuania where the investor-state tribunal declared the Republic of Lithuania liable for its conduct under a bilateral investment agreement.

Later recognition and enforcement proceedings of the award followed. First of all, the Court of Appeals refused to enforce the award based on the public policy grounds of the New York Convention. However, after the firm had filed a cassation claim, the Supreme Court of Lithuania agreed to recognise and enforce the Award in the Republic of Lithuania.

As mentioned, this case is significant because for the first time the Supreme Court of Lithuania analysed and enforced an investor-state arbitration award against Lithuania.