AVERUS team has successfully completed representation of the client UAB „Rietavo veterinarinė sanitarija“ against Ukio Bank regarding provision of financial factoring services and return of factoring reserve. The Supreme Court adopted the final ruling whereby fully rejected the claim of Ukio Bank to reimburse part of the funds which it has paid out to the client under the factoring agreement. The court changed the decision of the lower Kaunas County Court who satisfied Ukio Bank’s claim.

The dispute between the parties started due to ambiguous provision of the factoring agreement which was common in almost all factoring agreements of the bank. The bankruptcy administrator of the bank requested reimbursement of the factoring reserve from the client which, as per the bank, was allegedly paid out without legal basis. The court considered peculiarities of factoring regulations, factoring reserve and its objectives, as well as construction of the factoring agreement. Furthermore, the Supreme Court, after careful consideration of AVERUS’s arguments put forward in the cassation claim, has formed a precedent for interpretation of the essence of the factoring reserve which will have impact in future disputes related to financial factoring services.

The team consisted of partner Povilas Karlonas and senior associates Eglė Valiulienė and Ervinas Rimdeika.