Glimstedt, acting on behalf of Sanitex UAB, has successfully persuaded Lithuania's Supreme Court to refuse to recognize and enforce a Serbian arbitration award against the Serbian state privatization agency.
According to Glimstedt, the subject of the dispute was the termination of an agreement between Lithuanian investors and Serbia. The Serbian privatization agency unilaterally terminated the agreement with the investors and reclaimed the object of privatization without repaying the amount invested, and proceeded to sue for an award of the contractual penalty of 25% of the sale amount. In 2012, the Serbian Arbitration panel adopted a decision to uphold the lawsuit of the Privatization Agency, awarding an amount of EUR 3,275,000 to be paid by the investors.
When the Serbian Privatization Agency approached the Lithuanian Court of Appeal for the recognition and enforcement of the arbitration award in Lithuania, the Lithuanian investors raised the issue of refusal of recognition of the contractual penalty awarded by the arbitration as contradictory to public order."
The Supreme Court of Lithuania, in a final and non-appealable ruling, refused to recognize and enforce the arbitration award.
The Glimstedt team included Partners Kestutis Jaskutelis and Solveiga Paleviciene, Senior Associates Audrius Zvybas, Kornelija Basijokiene, and Albertas Stopas, and Associate Renata Racko.
