Ellex has successfully represented TD Trans before the Senate of the Supreme Court of Latvia in a cassation claim regarding a Riga Regional Court ruling on the breach of the unfair competition prohibition, where almost EUR 30,000 in loss compensation was awarded.
According to Ellex, "the claimant, engaged in the logistics sector, initially brought an action in court against two defendants, namely, a forwarding company and a natural person who was the former employee of the claimant. In the opinion of the claimant, the breach of unfair competition prohibition in the actions of both defendants stemmed from the fact that the forwarding company with which the claimant collaborated in the cargo carriage sector, was partially owned by a sister of the other defendant, who was an employee of the claimant."
"In the opinion of the claimant," the firm explained, "all transactions relating to the carriage by road made with the particular forwarding company had caused damages to the claimant; therefore, the claimant sought recovery of damages in the amount of approximately EUR 68,000, jointly and severally, from the defendants which amounted to a two-year profit of the forwarding company. In substantiating both the establishment of the breach of the fair competition prohibition and the establishment of the specific amount of damages, among others, the claimant argued that an alleviated standard of establishing a breach and losses is to be applied in cases of breach of the competition law pursuant to Directive 2014/104/EU."
The court of first instance had partially satisfied the claim against the company, adjudicating some EUR 6,800 in losses, Ellex reported, "while dismissing the claim against the natural person altogether, since the claimant’s employee did not amount to a market participant and a competitor of the claimant during the alleged period of the breach. Conversely, the Riga Regional Court upheld the establishment of the breach of the unfair competition infringement by the company, while increasing the amount of the indemnity of damages to be recovered from the company up to almost EUR 30,000.”
Finally, according to the firm, "by its judgment of December 28, 2022, the Senate of the Supreme Court revoked the judgment of the Riga Regional Court – in the part whereby the claimant’s claim was satisfied – and returned the case for a new review at the Riga Regional Court," together with an elaborate criticism on its initial ruling. "The Riga Regional Court must adjudicate the claimant’s claim taking into account the conclusions contained in the judgment of the Senate," the firm reported.
Ellex’s team included Partner Martins Gailis and Associated Partner Irina Kostina.
