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Our team achieves a positive outcome for the client in a dispute worth 84 million

  • Latvia

    19-04-2021

    With great satisfaction our team has awaited the final judgment of the Supreme Court, ending the lawsuit against our client SIA LatRosTrans, which had lasted for more than 10 years. At the end of 2010, the Belarusian company Druzba brought a claim against LLC LatRosTrans requesting the court to declare its ownership rights to technological oil located in the pipeline owned by LLC LatRosTrans. Over the years, the dispute escalated into a claim for compensation of damages and the value of the oil, with the total value of the claim exceeding € 84 million. The claim was partially rejected in 2018, and the dispute continued for the recovery of the remaining € 66 million.

    In order to resolve the dispute, the parties and the court had to delve into the history and legal aspects of the restoration of Latvia's independence, as well as the nuances of international, constitutional, property, and civil law. The essence of the dispute was, among other things, about who, after the restoration of Latvia's independence, had the right to the civilian objects that had been placed in the territory of Latvia by the USSR. We are pleased that the Latvian courts acknowledged that such objects were initially acquired by the Latvian state, so they could not have become the property of other entities on the basis of internal accounting documents of the former USSR or foreign laws. Having not established the existence of a special international agreement, the court ruled that the disputed technological oil had never become the property of either Belarus or Druzhba. The case was examined twice in the Supreme Court, with the Supreme Court refusing to initiate cassation proceedings for the third time.

    We extend our gratitude to the client for placing trust in us throughout the litigation process. Many thanks also to the experts involved (especially Dr Mārtiņš Paparinskis), who provided opinions in this case and significantly helped to advance legal findings. Most importantly, thanks to our team, who fought tirelessly and believed that justice must prevail.

    The litigation was led by the firm's partners Agris Bitāns and Ilze Kramiņa, significant support was given by the assistant Attorney at Law Laura Medne, with the participation of a number of other colleagues at various stages of the case.

    Read more: http://www.at.gov.lv/en/jaunumi/par-tiesu-lietam/civillietu-departamenta/judgment-enters-into-force-rejecting-belarusian-companys-claim-for-recovery-of-more-than-66-million-euros-from-latrostrans-10569

    This information is for guidance purposes only and should not be regarded as a substitute for taking legal advice. Please refer to the full terms and conditions on our website.

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