Basketball club of Surgut City “Universitet” v. L. L.

At a glance

Parties

Basketball club of Surgut City “Universitet” (Surguto miesto viešoji organizacija Krepšinio klubas „Universitet“) v. L. L.

Case no.

Court of Appeal of Lithuania, civil case No. e2T-47-381/2020 (court process No. 2-60-3-00034-2020-2)

Court

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

Underlying award(s)

Basketball Arbitral Tribunal (BAT), Geneva, award of 19 February 2020 in case No. BAT 1443/19

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, Article V(1), V(2)(a), V(2)(b)

Court

Marius Bajoras, Artūras Driukas (presiding judge and rapporteur), Asta Radzevičienė

Sector

Professional basketball; sports employment contracts

Outcome

The BAT award was recognised in Lithuania, and enforcement was allowed for EUR 5,795 owed by L. L. to the club (3 September 2020).

Amount

The award gave the club EUR 6,525 in total; enforcement was sought and allowed for EUR 5,795, after set-off of RUB 50,050 (EUR 679) plus EUR 51 interest owed to L. L. Costs of the recognition proceedings: EUR 1,188 awarded to the club.

The dispute

L. L., a basketball player, and the Surgut City basketball club “Universitet” signed Supplementary Agreement No. 1 to the athlete's employment contract on 1 September 2018. The agreement covered his pay for the 2018/2019 and 2019/2020 seasons and sent disputes to the Basketball Arbitral Tribunal (BAT) in Geneva. L. L. started BAT proceedings for compensation for the 2019/2020 season and for flight tickets. The award of 19 February 2020 granted him small amounts in roubles but ordered him to pay the club's arbitration costs and part of its legal fees. The club applied to the Court of Appeal of Lithuania to recognise and enforce the award against L. L. He objected under Article V(2)(a) of the New York Convention. His argument was that the dispute arose from an employment contract, and Article 12(2) of the Lithuanian Law on Commercial Arbitration does not allow such disputes to go to arbitration. He also objected under Article V(2)(b), arguing that an award without reasons breaches public policy and the right to a fair trial.

Key holdings

1. L. L. did not rely on any ground in Article V(1) of the New York Convention, so the Court did not examine those grounds. It examined only the Article V(2) grounds, which it must consider of its own motion. ¶ 10
2. The dispute was arbitrable. Under the Lithuanian Law on Sport and Supreme Court case law, the Supplementary Agreement was a sports activity contract and not an employment contract. Its terms covered pay, medical checks, fines, bonuses, housing, transport and flight tickets. Disputes under such a contract may go to arbitration even though the relationship has some features of employment. The Agreement's reference to an employment contract does not change this. ¶¶ 14–17, 19
3. L. L.'s position was inconsistent. He started the BAT proceedings himself under the Agreement, and in the Lithuanian proceedings he did not dispute BAT's jurisdiction or the arbitration agreement. ¶ 18
4. An award without reasons does not breach public policy here. Public policy is read narrowly as international public policy. Under Article 16.2 of the BAT Rules, the parties agreed that awards in disputes worth no more than EUR 100,000 are issued without reasons unless a party requests reasons and pays an advance. By agreeing to BAT arbitration, L. L. accepted this. ¶¶ 21–23
5. The award is recognised. Enforcement is allowed only for the EUR 5,795 that the club requested, which is the EUR 6,525 awarded to it less RUB 50,050 (EUR 679) and EUR 51 interest owed to L. L. ¶¶ 24–25, operative part
6. L. L. must pay the club EUR 1,188 in costs: EUR 719 for legal services and EUR 468.78 for translations. ¶¶ 26–27

Procedural history

1. 1 September 2018L. L. and the club sign Supplementary Agreement No. 1, which contains the BAT arbitration clause, and an employment contract. The employment contract is registered with the Russian Basketball Federation on 5 October 2018.
2. 19 February 2020BAT in Geneva issues an award without reasons in case No. BAT 1443/19.
3. 3 September 2020The Court of Appeal of Lithuania recognises the award and allows enforcement for EUR 5,795, plus EUR 1,188 in costs. The ruling took effect on the day it was given and could be appealed in cassation to the Supreme Court within 30 days.

Tribunal, counsel and experts

Decided by

• Artūras Driukas Judge, Court of Appeal of Lithuania (presiding judge and rapporteur)
• Marius Bajoras Judge, Court of Appeal of Lithuania
• Asta Radzevičienė Judge, Court of Appeal of Lithuania

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Keywords

• New York Convention
• recognition and enforcement
• Basketball Arbitral Tribunal
• BAT
• arbitrability
• employment disputes
• sports activity contract
• public policy
• unreasoned award
• Article V(2)(a)
• Article V(2)(b)
• BAT Rules Article 16.2
• basketball
• Lithuania
• Law on Commercial Arbitration Article 12(2)
• set-off
• Russian Basketball Federation

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