Victory in a construction design liability dispute before the Kaunas Regional Court

Our Dispute Resolution team has secured compensation for a manufacturer operating in the custom decorative surfaces market after the construction permit for its planned warehouse was cancelled.

The warehouse, planned in Kaunas District, was intended to support the company’s business expansion.

Although the appointed designer had obtained a construction permit, the project failed to comply with restrictions applicable near an existing gas transmission pipeline. The administrative court subsequently cancelled the permit, leaving the client unable to build to the approved design and with project costs it could not recover.

Our Dispute Resolution team, with attorney-at-law Albertas Šekštelo representing the client, combined negotiation with civil litigation. After the pipeline-related negotiations and the administrative proceedings concerning the permit, we sought compensation from both the Kaunas District Municipality Administration and the designer.

The claim against the municipality was resolved through an out-of-court settlement covering the client’s legal expenses, avoiding separate damages proceedings against the public authority. When no agreement could be reached with the designer, we brought proceedings.

In its ruling of 13 October 2026, the Kaunas Regional Court awarded the client the remaining damages against the designer, together with interest and a contribution towards litigation costs. The damages included the full amount paid for design work and pre-litigation legal expenses, including costs associated with assessing the claim and negotiating compensation with the designer.

The case demonstrates that a permitting authority’s errors do not remove a designer’s independent responsibility to deliver a legally compliant project. It also illustrates how reasonable pre-litigation legal costs can be recovered as damages where their connection to the contractual breach is established. For the client, the combined negotiation and litigation strategy secured compensation from both responsible parties. The matter reflects our experience in construction disputes, contractual liability, and commercially focused dispute resolution.