„W. A. G. Issuing Services, a. s.“ v. UAB „Alanija“

At a glance

Parties

W. A. G. Issuing Services, a. s. (Czech Republic) v. UAB Alanija (Lithuania)

Case no.

Lithuanian Court of Appeal civil case No. e2T-65-381/2019 (court process No. 2-60-3-00053-2019-1)

Court

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

Judges

Artūras Driukas (presiding and rapporteur), Aldona Tilindienė, Jūratė Varanauskaitė

Underlying award(s)

Award of 29 March 2019, Case No. RSP 54/19, Arbitration Court attached to the Economic Chamber of the Czech Republic and the Agricultural Chamber of the Czech Republic (final on 13 June 2019)

Treaty

New York Convention 1958, Article V

Sector

Payment services; commercial debt collection

Outcome

The award was recognised and declared enforceable in Lithuania (24 October 2019). The applicant's own costs were refused.

Amount

Award enforced: EUR 4,479.26 debt with 8.5% and 9% annual interest; EUR 1,100.64 contractual penalty; CZK 14,400 claim-filing costs; CZK 37,501 arbitration fees and administrative costs; CZK 25,990.80 representation costs.

The dispute

On 14 March 2018 W. A. G. payment solutions, a. s. signed a services contract with the Lithuanian company UAB Alanija, which undertook to pay invoices by their due dates. W. A. G. Issuing Services, a. s. is a subsidiary of W. A. G. payment solutions and was entitled under the contract to claim payment for the services. Services were provided from 16 March to 29 December 2018, but Alanija left the invoices unpaid. The claim was assigned to W. A. G. Issuing Services. It obtained a Czech arbitral award for the debt, interest, a contractual penalty and costs, and then asked the Lithuanian Court of Appeal to recognise and enforce the award. Court papers were sent several times to Alanija's registered office, to its director's home address and to its e-mail address, but could not be delivered. Alanija filed no response.

Key holdings

1. Service on Alanija counted as proper. Under Article 2.49(3) of the Civil Code and Article 123(4) of the Code of Civil Procedure, a document sent to a legal person's registered office is treated as served 10 days after it is sent. ¶ 4
2. The application gave the award date as 13 June 2019. The Court treated this as a clerical error: the award was made on 29 March 2019, and 13 June 2019 is the date it became final. ¶ 6
3. Article V of the New York Convention lists the only grounds for refusing recognition. The Court may not review the merits of the award. The grounds in Article V(1) apply only if the party opposing enforcement raises and proves them. Alanija filed no response, so the Court examined only the Article V(2) grounds, which it must check of its own motion. ¶¶ 8–10
4. Arbitrability (Article V(2)(a)): claims for debt, interest and a penalty arising from a contract between private legal persons can be arbitrated under Article 12 of the Lithuanian Law on Commercial Arbitration. ¶ 11
5. Public policy (Article V(2)(b)) means international public policy and is read very narrowly. The Court found nothing suggesting that the award breaches public policy. ¶¶ 13–14
6. With no ground for refusal established, the award was recognised and declared enforceable in Lithuania. The applicant's litigation costs were not awarded because it filed no documents to support them. ¶¶ 15–16; operative part

Procedural history

1. 14 March 2018W. A. G. payment solutions, a. s. and UAB Alanija sign the services contract.
2. 29 March 2019The Czech arbitration court issues its award in Case No. RSP 54/19 and grants the claim in full.
3. 13 June 2019The award becomes final.
4. 24 October 2019The Court of Appeal of Lithuania recognises the award and declares it enforceable. Its ruling took effect the same day and could be appealed in cassation to the Supreme Court of Lithuania within 30 days.

Tribunal, counsel and experts

Decided by

• Artūras Driukas Judge, Court of Appeal of Lithuania (presiding judge and rapporteur)
• Aldona Tilindienė Judge, Court of Appeal of Lithuania
• Jūratė Varanauskaitė Judge, Court of Appeal of Lithuania

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Keywords

• New York Convention
• recognition and enforcement
• Article V(2)(a)
• arbitrability
• Article V(2)(b)
• public policy
• international public policy
• ex officio review
• default of respondent
• service of process
• Czech arbitration court
• Economic Chamber of the Czech Republic
• Lithuania
• assignment of claim
• unpaid invoices
• contractual penalty
• payment services

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