AAB „Mogiliovoblavtotrans“ v. UAB „Seven Miles Logistics“

At a glance

Parties

AAB „Mogiliovoblavtotrans“ (applicant) v. UAB „Seven Miles Logistics“ (interested person)

Case no.

Civil case No. 2T-33-381/2020 (court process No. 2-60-3-00019-2020-5)

Court

Lietuvos apeliacinis teismas (Court of Appeal of Lithuania), Civil Division, Vilnius

Underlying award(s)

Award of 12 June 2019 of the International Arbitration Court at the Belarusian Chamber of Commerce and Industry, case No. 1733/10-18

Forum and rules

Recognition and enforcement under the 1958 New York Convention, Lithuanian Code of Civil Procedure and Law on Commercial Arbitration

Treaty

New York Convention 1958 (Articles III, IV(1), V(1), V(2))

Court

Artūras Driukas (presiding and rapporteur), Dalia Kačinskienė, Danguolė Martinavičienė

Sector

Transport services

Outcome

The award was recognised and declared enforceable in Lithuania.

Amount

Award enforced: EUR 2,400 debt, EUR 801.60 late-payment penalties and EUR 674.86 arbitration fee costs.

The dispute

AAB „Mogiliovoblavtotrans“ and UAB „Seven Miles Logistics“ signed Contract No. 20-12/16 on the provision of transport services on 20 December 2016. Clause 7.3 of the contract sent disputes to the International Arbitration Court at the Belarusian Chamber of Commerce and Industry. That court issued an award on 12 June 2019 in case No. 1733/10-18 for improper performance of the contract. It ordered Seven Miles Logistics to pay EUR 2,400 in debt, EUR 801.60 in late-payment penalties and EUR 674.86 in arbitration fee costs. Mogiliovoblavtotrans then applied to the Court of Appeal of Lithuania to have the award recognised and enforced. Seven Miles Logistics received notice of the application but filed no response.

Key holdings

1. The applicant met the requirements of Article IV(1) of the New York Convention. It filed certified copies of the award and of the contract containing the arbitration clause, each with a certified Lithuanian translation. ¶ 8
2. The party resisting enforcement bears the burden of proving the grounds in Article V(1). Seven Miles Logistics raised none of them, so the court did not examine those grounds. ¶¶ 5, 9
3. The court checked the Article V(2) grounds of its own motion (ex officio). Under Lithuanian law, a dispute over improper performance of a transport services contract and the resulting damages can be arbitrated. Enforcing the award does not conflict with Lithuanian public policy. ¶ 10
4. A court deciding on recognition may not review the merits of the award, the arbitrators' findings of fact, their assessment of evidence or their application of law. Its review is limited to the exhaustive grounds in Article V. ¶ 4
5. The award was recognised and declared enforceable in Lithuania. The ruling took effect on the day it was given and could be appealed in cassation to the Supreme Court of Lithuania within 30 days. Operative part

Procedural history

1. 20 December 2016The parties sign Transport Services Contract No. 20-12/16, which contains an arbitration clause (clause 7.3).
2. 12 June 2019The International Arbitration Court at the Belarusian Chamber of Commerce and Industry issues its award in case No. 1733/10-18 in favour of Mogiliovoblavtotrans.
3. 31 March 2020Seven Miles Logistics receives notice of the enforcement application at its registered address. It files no response.
4. 9 April 2020The Court of Appeal of Lithuania recognises the award and grants leave to enforce it.

Tribunal, counsel and experts

Decided by

• Artūras Driukas Judge, Lietuvos apeliacinis teismas (Court of Appeal of Lithuania) (presiding judge and rapporteur)
• Dalia Kačinskienė Judge, Lietuvos apeliacinis teismas (Court of Appeal of Lithuania)
• Danguolė Martinavičienė Judge, Lietuvos apeliacinis teismas (Court of Appeal of Lithuania)

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Keywords

• New York Convention
• recognition and enforcement
• Lithuania
• Belarus
• Belarusian Chamber of Commerce and Industry
• International Arbitration Court
• Article V(2)
• public policy
• arbitrability
• ex officio review
• burden of proof
• Article IV documents
• transport services contract
• no review of merits
• Law on Commercial Arbitration

Summary generated with AI from the published documents — refer to the award for the authoritative text.