On February 2012, UAB "Gatvių statyba" submitted the claim to the Vilnius district court requesting for 57 thousand Euros, plus 8,06 % interest, for the performed works in Saltiniu Namai. Group company PK INVEST UAB did not agree with the claim because the works were performed unduly and the deficiencies were recorded by the parties in writing.
The case was heard at Vilnius district court. The claim of the contractor and the counter-claim of PK INVEST UAB had been upheld partially.
PK INVEST UAB filed an appeal on the basis that the court refused to lower the price of the works that were performed partially and with deficiencies.
The Court of Appeal of Lithuania decided on 26.09.2014 to annul the decision of first instance court and adopted a new decision – court rejected the claim of UAB ,,Gatvių statyba” and satisfied the counterclaim of PK INVEST UAB.
The Court of Appeal of Lithuania decided to reduce the amount of the Construction agreement from EUR 650 800.80 to EUR 584 911.14 and also awarded PK Invest UAB EUR 11 509.55 of overpayment from UAB “Gatvių statyba“ and 6% of annual interest from the awarded amount from 29.03.2012 until full implementation of court’s decision.
The plaintiff UAB “Gatvių statyba” was also obliged to submit the surety bond guarantee of EUR 27 189.82 to PK INVEST UAB within 40 days from the date of the appellate court decision. If UAB ,,Gatvių statyba” fails to submit the guarantee it should pay EUR 27 189.82 fine to PK INVEST UAB. The Court of Appeal of Lithuania also awarded to PK INVEST UAB litigation costs.
UAB ,,Gatvių statyba” lodged a cassation to the Supreme Court of Lithuania requesting to annul the decision of appellate court and to maintain valid the decision of first instance court.
The Supreme Court of Lithuania has dediced to reject the cassation of UAB ,,Gatvių statyba” and left the decision of the Court of Appeal of Lithuania unchanged. Decision is final and the dispute had a positive outcome for the group company PK INVEST UAB.
Allan Remmelkoor
Member of the Management Board
Tel.: +372 6144 920
Email: allan.remmelkoor@prokapital.ee