Two wins in a row in terms of interim measures

Our client’s AVAgro LLC Lithuanian subsidiary AVAgro UAB was sued by Singapore based company Dreymoor before Lithuanian Courts with the request to apply interim measures to attach the AVAgro UAB asset. The main issue, that Dreymoor requested interim measures for, was related to the arbitration between AVAgro LLC, AVAgro UAB and Dreymoor before ICDR AAA in New York.

Our Dispute Resolution team was hired to represent AVAgro UAB before Lithuanian courts in the matters related to the interim measures in this complicated and delicate cross-border issue. After our intervention, the Lithuanian Courts dismissed the opponent’s request for interim measures. Moreover, the Lithuanian Court of Appeals established new case law rules for this type of case. For example, it is advisable to notify the respondent about the request for interim measures (default rule was ex parte interim measures); it is necessary to clarify the status of the pending arbitration case; it is important to check whether in both cases the claimant seeks similar measures and whether the Arbitral Tribunal is in a better position to evaluate and grant relevant interim measures. This ruling is going to be a landmark case law in applying interim measures assisting commercial arbitration.

When Dreymoor applied for recognition and enforcement of the arbitral award within Lithuania, Dreymoor again sought the interim measures. And again unsuccessful. The Lithuanian Court of Appeal heard our arguments and dismissed Dreymoor’s request as baseless.

These case-law examples contribute to the development of the Lithuanian case law in terms of interim measures to be more in line with the leading worldwide practice.