Settlement ends 10-year dispute over Vilnius “Žalgiris” base site

Our dispute resolution team, led by attorney-at-law Jovitas Elzbergas, has successfully concluded a dispute of more than ten years concerning the state-owned land plot at Žolyno g. 27, Vilnius. On 8 October 2026, the Vilnius City District Court approved a settlement agreement between our client UAB “Kos Invest”, the Vilnius Regional Prosecutor, the National Land Service and Vilnius City Municipality.

In 1994, the plot was leased without an auction until 2093 to the football club “Žalgiris” for the operation of a stadium. In 2014, a detailed plan was approved permitting the construction of residential buildings and a modern football pitch on the site. In 2015, the client acquired the sports ground located on the plot and became the tenant of the plot. The dispute arose from a claim brought by the Vilnius Regional Prosecutor, acting in the public interest, seeking termination of the state land lease agreement and an order requiring the client to vacate the plot, i.e. to relocate or demolish the sports ground.

The Vilnius Regional Prosecutor, defending the public interest, brought the matter before the court. In the Prosecutor’s view, the purpose of the plot leased on preferential terms had been changed unlawfully.

The court of first instance dismissed the claim. The court of appeal terminated the lease agreement, and the Supreme Court of Lithuania (SCL) upheld the appellate ruling. The question of what should be done with the plot and the buildings was remitted for fresh examination.

At this stage, we sought to ensure that the client’s property rights were not disproportionately restricted and that the client retained the ability to implement the detailed plan.

In parallel, the client was pursuing a case against the National Land Service concerning the conclusion of a lease agreement.

In 2020, the dispute concerning the further management and use of the buildings was referred to court-annexed mediation (which, with interruptions, lasted five years and involved three court mediators – judges of the SCL).

The settlement reached in mediation fully resolved the dispute:

• the client acquires, at market price, the part of the plot designated for residential construction under the detailed plan;
• the client leases the remaining part of the plot, where it will build a modern football or multi-purpose stadium with infrastructure, which it will transfer to Vilnius City Municipality free of charge;
• the case concerning the vacating of the plot and the demolition of the sports ground is closed.