TGS Baltic has received a positive verdict in the damage recovery case against SIA VELVE – member of the “construction companies’ cartel”.

16.08.2022 TGS Baltic has received a positive verdict in the damage recovery case against SIA VELVE – member of the “construction companies’ cartel”.

TGS Baltic, representing the interests of the municipality of the city of Riga, has received a positive decision  of the first instance court in the proceedings against SIA VELVE - a member of the “construction companies’ cartel”.

This is the first case in Latvia where the court had a chance to rule on the recovery of damages caused by the cartel based on inter alia 10 percent presumption of price increase established by the legislator.

A year ago, the Competition Council of the Republic of Latvia adopted a decision and decided to punish ten of Latvia's largest construction companies for participating in a long-term prohibited agreements in the public procurements organized by state and local governments. SIA VELVE admitted participation in the cartel and concluded a settlement with the Competition Council.

TGS Baltic, representing the interests of the municipality of the city of Riga, brought a claim to the Court of Economic Affairs of the Republic of Latvia for the recovery of damages caused as a result of the violation of competition law. The Court of Economic Affairs decided to partially satisfy the claim with the judgment of August 16, 2022.

Although SIA VELVE has publicly announced that it will appeal the judgement of the court of the first instance, in the opinion of TGS Baltic – the law stipulates an the obligation of the cartel participant to compensate the damages caused.

The municipality of the city of Riga was advised and represented in court by TGS Baltic partner Sandis Petrovičs, Attorney at Law Dr.iur. Zane Sedlova and Assistant Attorney at Law Elīza Siliņa.

 

TGS Baltic is a top-tier full-service business law firm in Latvia, Estonia, and Lithuania, employing 150+ lawyers across the Baltics. http://tgsbaltic.com/