The Client sought to annul the arbitral award on a public policy ground as it conflicted with the national court decision, favourable to the Client. Namely, in June 2020, the national court annulled the agreement, which was relied on by the arbitral tribunal when it issued the award in January 2020, favourable to the Respondent. Thus, for the first time in Lithuanian case law, the Supreme Court ruled that the situation when the national court annuls the agreement, which was the basis for the arbitral award, is contrary to the public policy.
This is an exceptional outcome of the case in a pro-arbitration country where the review of arbitral awards on public policy grounds is exceptionally narrow and relied only on extraordinary circumstances.
The Client was represented by our litigation and arbitration experts – Associate Partner Žydrūnė Stuglytė and Associate Patricija Rukštelytė.