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CITYSERV (CTS): Regarding Vilnius County Court decision

UNI - EN REPORT No

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7

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2019

UNI - EN REPORT No7/2019

Regarding Vilnius County Court decision

On 25 July 2019 Vilnius County Court adopted decision in a case where Vilnius City municipality administration and General Prosecutor’s office claimed City Service SE (further – the Company) regarding recovery of 20,6 million EUR losses. The lawsuit was based on allegations that Vilnius City municipality might have suffered losses arising from public procurement agreements concluded in years 2002 and 2010 between Vilnius City municipality and the Company. These agreements were signed after Vilniaus City administration admitted the Company as a winner of international public procurement tenders.

Vilnius County Court adopted decision partially to uphold plaintiffs demands and adjudge 10.3 million EUR sum from the Company to Vilnius City municipality. The Court also stated the fact that Vilnius City municipality is also liable for its own losses.

Such legal practice eliminates all possibilities for public-private cooperation between municipalities and private business.

City Service SE disagrees with the decision of the first instance court and is convinced that the decision is unfounded and illegal. In Company’s opinion, none of civil liability conditions have been proved. The decision has not come into force and will be appealed to the Court of Appeal of Lithuania within 30 days, all legal arguments and objections regarding adopted decision will be provided in Company’s appeal.

The Company reminds, that in 2013 Supreme Court of Lithuania ruled in favor of ESCO model in above-mentioned agreements between City Service SE and Vilnius city municipality. Both public procurement agreements and ESCO model itself were declared as compliant with the laws.

Artūras Gudelis,

Chairman of the Management Board

+ 370 5 239 4900

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