Motieka & Audzevicius Successful for Axis Industries in Indemnification Claim

Motieka & Audzevicius Successful for Axis Industries in Indemnification Claim

Lithuania
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Motieka & Audzevicius has successfully represented Axis Industries in an insurance indemnification dispute.

According to Motieka & Audzevicius, "Axis Industries is a contractor that designed and installed a mechanical biological treatment plant for household waste in the Alytus district [of Lithuania] in 2015," and Alytus Regional Waste Management Center “stated that the contractor, Axis Industries, had not fulfilled its contractual obligations properly and in a timely manner." According to the firm "the plaintiff, since the end of the construction of the plant, has repeatedly accused the contractor of improper performance of the contract and therefore demanded that Gjensidige pay EUR 781,560.90, in accordance with the unconditional letter of guarantee for the performance of the contractor’s obligations. As a result, other related cases were heard in which the client celebrated the victory, but this did not stop Alytus Regional Waste Management Center from filing a claim with the insurance company.”

According to Motieka & Audzevicius, "the dispute between the parties arises mainly as to whether there is a basis for the plaintiff (customer) Alytus Regional Waste Management Center to demand payment of an insurance indemnity … according to the surety insurance letter issued by the defendant.”

Finally, the firm reported, "after a successful showing before the Lithuanian Court of Appeal, both the Vilnius Regional Court and the Lithuanian Court of Appeal ruled that there are no grounds to satisfy the claim of Alytus Regional Waste Management Center."

Motieka & Audzevicius’ team included Partner Jovitas Elzbergas and Senior Associate Donatas Lapinskas.