Privati unitarinė transporto bendrovė „VseAll“ v. UAB „Audasta“

At a glance

Parties

Private Unitary Transport Company "VseAll" (Belarus) v. UAB "Audasta" (Lithuania)

Case no.

Court of Appeal of Lithuania, civil case No. 2T-61-370/2019 (court process No. 2-60-3-00050-2019-8)

Forum and rules

Recognition and enforcement under the 1958 New York Convention, Lithuanian Code of Civil Procedure (Articles 809–813) and Law on Commercial Arbitration (Article 51)

Court

Lietuvos apeliacinis teismas (Court of Appeal of Lithuania), Civil Division: Dalia Kačinskienė, Danguolė Martinavičienė (presiding and rapporteur), Asta Radzevičienė

Underlying award(s)

Award of the International Arbitration Court at the Belarusian Chamber of Commerce and Industry of 22 April 2019, case No. 1786/63-18

Sector

Freight forwarding; road transport

Outcome

The award was recognised and declared enforceable in Lithuania (5 September 2019).

Amount

Award enforced: EUR 10,312.94 in total (EUR 6,000 principal debt, EUR 2,600 downtime penalty, EUR 100 customs redirection costs, EUR 50 for a damaged TIR carnet, EUR 50 for an additional unloading place, EUR 396 contractual penalties, EUR 1,116.94 arbitration fee). Costs of the court proceedings awarded to VseAll: EUR 1,346.50.

The dispute

VseAll, a Belarusian private unitary transport company, and UAB "Audasta", a Lithuanian company, concluded freight forwarding contract No. 2603 on 26 March 2018. Clause 5.1 of the contract sent all disputes to the international commercial arbitration court at the Chamber of Commerce and Industry at the claimant's seat. On 22 April 2019 the International Arbitration Court at the Belarusian Chamber of Commerce and Industry ordered Audasta to pay VseAll a principal debt, penalties, various expenses and the arbitration fee. VseAll asked the Court of Appeal of Lithuania to recognise the award and allow its enforcement in Lithuania. Audasta was served but filed no response.

Key holdings

1. Belarus is a party to the New York Convention. Recognition of the award is therefore governed by the Convention and by Article 51 of the Lithuanian Law on Commercial Arbitration. ¶¶ 4–5
2. The formal requirements of Article IV of the Convention were met. The applicant filed a duly certified copy of the award and of the contract containing the arbitration clause, each with a Lithuanian translation. Clause 5.1 of the contract is an arbitration agreement within Article II. ¶¶ 6–9
3. The court examines the grounds in Article V(2)(a) and (b) of its own motion. Disputes under carriage or freight forwarding contracts are not reserved to the courts and can be arbitrated (Law on Commercial Arbitration, Article 12). Enforcing the award would not breach Lithuanian public policy. ¶¶ 10–12
4. The court recognised the award and allowed its enforcement in Lithuania for a total of EUR 10,312.94. Operative part
5. Audasta must pay VseAll's costs of EUR 1,346.50, of which EUR 390.50 was for translation. The amount does not exceed the maximum fees set in the Minister of Justice's recommendations of 2 April 2004 (Order No. 1R-85). ¶¶ 13–14

Procedural history

1. 26 March 2018The parties concluded freight forwarding contract No. 2603, which contains an arbitration clause (clause 5.1).
2. 22 April 2019The International Arbitration Court at the Belarusian Chamber of Commerce and Industry issued its award in case No. 1786/63-18 in favour of VseAll.
3. 12 July 2019The Court of Appeal of Lithuania accepted the application for recognition. It set a written hearing and gave Audasta until 12 August 2019 to respond.
4. 18 July 2019The application was served on Audasta's manager. Audasta filed no response.
5. 5 September 2019The Court of Appeal recognised the award, allowed its enforcement and awarded costs. The ruling could be challenged by cassation appeal to the Supreme Court of Lithuania within 30 days.

Tribunal, counsel and experts

Decided by

• Danguolė Martinavičienė Judge, Court of Appeal of Lithuania (presiding judge and rapporteur)
• Dalia Kačinskienė 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
• foreign arbitral award
• Article V(2)
• public policy
• arbitrability
• Article IV formal requirements
• arbitration agreement Article II
• Belarusian Chamber of Commerce and Industry
• freight forwarding
• road transport
• TIR carnet
• Lithuania
• Belarus
• Law on Commercial Arbitration Article 51
• default of respondent

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