AVERUS has successfully represented the interests of KLASCO, the largest Lithuanian stevedoring company, before the Court of Appeals regarding payment of debt for the stevedoring services. The dispute between KLASCO and one of its clients began when KLASCO’s client refused to pay a fee for undischarged obligation to ensure minimum volume of cargo. The agreement between KLASCO and its client provided for the client’s obligation to ensure certain minimum volume of cargo to be directed for handling through KLASCO terminals, and in case this volume is not reached, the KLASCO’s client had to pay a fee based on the shortage of volume. KLASCO’s client did not meet minimum volume obligation and refused to pay the additional fee by claiming that it did not entail any losses to KLASCO and such additional payment is a punitive and unreasonable penalty.
Both the court of first instance in Klaipeda and the Court of Appeals acknowledged and agreed with our arguments and satisfied the claim of KLASCO. The Court of Appeals decided that payment demanded by KLASCO is reasonable and not a penalty, but part of the price for stevedoring services which KLASCO’s client has to pay if does not meet and ensure minimum cargo volumes through KLASCO terminals as per the agreed contract.
KLASCO was represented by senior associate Eglė Valiulienė.