TGS Baltic successfully defended interests of Lietuvos geležinkeliai in a case of almost EUR 0.8 million

05.07.2020 TGS Baltic successfully defended interests of Lietuvos geležinkeliai in a case of almost EUR 0.8 million

TGS Baltic represented Lietuvos geležinkeliai and won in civil proceedings against  German insurance company Lampe & Schwartze. The German company claimed to award of almost EUR 0.8 million for preservation of a cargo ship “Venta” from its former owner Lietuvos jūrų laivininkystė (LJL). As a cargo ship was pledged to Lietuvos geležinkeliai, after LJL filed for bankruptcy, the German company claimed payment of the debt from Lietuvos geležinkeliai.

In September 2015, Lampe & Schwartze signed a contract with LJL for refund of the money paid for the ship. The German company also stated that it was orally agreed with representatives of Lietuvos geležinkeliai, to which Venta was mortgaged and to which 57 percent shareholding interest in JLJ owned by the state was soon transferred, that the debt would be paid after sale of Venta.

Upon repeated examination of the case, the courts noted that Lietuvos geležinkeliai in the agreement with Lampe & Schwartze, that Lietuvos geležinkeliai had never signed, did not waive the mortgage over Venta and did not agree to pay the debts of LJL to the German company. Meanwhile, there is no data in the case file to prove the oral agreement between Lietuvos geležinkeliai and Lampe & Schwartze on debt repayment.

The courts stated that Lampe & Schwartze did not prove unfair pre-contractual actions by Lietuvos geležinkeliai that could give rise to liability.

TGS Baltic senior associate Erika Jurgutytė represented the client in this case.