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Cobalt Wins Dispute with Balta over Damage Claim Involving Volvo Truck

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Cobalt has successfully represented Swedish truck manufacturer Volvo Truck Corporation in a dispute initiated by Balta against Latvian truck conversion specialist Unitruck.

According to Cobalt, Balta had claimed nearly EUR 469,000 in damages plus statutory default interest following a truck fire during the warranty period. The dispute arose when a Volvo truck, equipped with woodchipper machinery by Unitruck, caught fire. Both Unitruck and Volvo argued that the incident resulted from incorrect use – an exception to the warranty – rather than a defect in the manufacturer’s equipment.

According to the firm, following proceedings before three court instances, Cobalt demonstrated that the truck and equipment were operated in breach of Volvo’s usage instructions, thereby activating the warranty exceptions. The dispute concluded with the Republic of Latvia’s Senate declining cassation proceedings, effectively upholding the second instance court’s decision.

The Cobalt team included Partner Sandija Novicka and Senior Associate Sabīne Zaula.