TGS Baltic have successfully defended the interests of VĮ Valstybinių miškų urėdija

17.07.2020 TGS Baltic have successfully defended the interests of VĮ Valstybinių miškų urėdija

TGS Baltic successfully represented  Valstybinių miškų urėdija (VMU) in the Supreme Court of Lithuania in a case against a timber buyer regarding long-term sale and purchase of timber. VMU is a state owned enterprise responsible for the supervision, administration and inventory of Lithuanian state forests, and is engaged in logging activities as well as trading timber and planting materials.

The timber buyer claimed in the case that under the contract for long-term sale and purchase of timber, which is concluded when one wins an auction, the timber buyer may disagree to the timber price recalculated every half a year. The Supreme Court of Lithuania upheld the position of VMU that price change is provided for in rules of public law, the recalculated price of timber does not have to be separately agreed with the buyer, therefore, the timber buyer does not have the right to disagree to the recalculated price and must buy the contractual timber volumes, therefore VMU reasonably imposed a fine for breach of obligations.

This case is beneficial for the client also by reason of other explanations given by the court, which will be useful in contractual relationships with other timber buyers.

TGS Baltic attorney at law Erika Jurgutytė successfully represented  Valstybinių miškų urėdija (VMU).