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Sorainen Successful for Siauliu Plentas Before Lithuanian Supreme Court

Sorainen Successful for Siauliu Plentas Before Lithuanian Supreme Court

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Sorainen has successfully represented Siauliu Plentas before the Supreme Court of Lithuania in a dispute related to the offset of contractual late interest with the Lithuanian Road Administration.

Siauliu Plentas is a road and bridge construction company.

"The main dispute in the case arose due to the fact that the Lithuanian Road Administration had calculated late contractual interest for overdue contractual works not based on each separate unfinished site, but based on the total price of all contracts," Sorainen reported. "The Supreme Court of Lithuania supported the position of Siauliu Plentas since the provisions of the contracts, which were prepared by the Lithuanian Road Administration itself as the contracting authority, lack clarity and have caused a deterioration in the financial position of the supplier."

According to Sorainen, Siauliu Plentas was awarded EUR 235,000, 8% in procedural interest, and litigation costs.

"This court ruling is important in that it confirmed not only the repeated unlawful actions of the Lithuanian Road Administration in calculating the contractual late interest but also recognized the claimant's right to demand procedural interest when filing a lawsuit for the recognition of off-sets as invalid," the firm informed. "After the first decision, the court also corrected the awarded amount due to an arithmetical error."

The Sorainen team included Partner Laurynas Lukosiunas and Associate Erikas Linkevicius.

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