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Sorainen Successful for Insolvent Credit Union Taupkase in Dispute

Sorainen Successful for Insolvent Credit Union Taupkase in Dispute

Lithuania
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Sorainen has successfully represented the insolvent credit union Taupkase (under the administration of Klaipedos Administratoriu Biuras) in a case regarding whether a share can be recognized as a deposit.

According to Sorainen, "the claimant, who was granted a loan by the union, sought to nullify [its purchase of] a union share as resulting from a mistake and asked the court to recognize the transaction as a deposit. The court ruled in favor of our client and dismissed the claim."

"The claimant sought to prove that he had understood that a share would undoubtedly be repaid or set off against the last installment of the loan," the firm reports. "Since bankruptcy proceedings were brought against the union, no such possibility arose. The claimant alleged that the union had misled him – they did not disclose the essence of a share and the fact that such a situation would occur in the event of insolvency. The court dismissed the action and observed that the applicant, a young person with higher education, could not have confused a share with a deposit."

The Sorainen team was led by Partner Kestutis Svirinas and included Senior Associate Kazimieras Karpickis and Associate Greta Kubiliunaite. 

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