Our dispute resolution team successfully represented the former director of a Lithuanian basketball club in a claim for damages. The basketball club represented by the new director filed a claim for damages based on the fact that, unaware to the basketball club’s shareholders and the board, the former director had entered into a marketing contract with a related company, under which that company was subject to a service fee.
The basketball club argued that the shareholders and the board of the club were unaware of the contract and that the company did not actually provide any marketing services, and therefore considered the amount paid under the said contract to be the damage that was claimed from the former director.
Although the court of the first instance upheld the claim, our team convinced the Court of Appeal of Lithuania that the decision of the court of the first instance was unlawful and the claim was unfounded. The Court of Appeal criticized the assessment of the evidence made by the court of the first instance and the conclusions drawn from it, finding that the basketball club had not proved that the contract had been concluded without the knowledge of the basketball club shareholders and the board, and also stating that the contract was actually performed. On the basis of these findings, the Court of Appeal dismissed the claim for damages.
We are happy to have defended the client from an unfounded claim in a complex case where the proper assessment of indirect evidence and witness testimony was essential.