V.P. v. MB „Monteva“

At a glance

Parties

V.P. (Ukrainian businessman) v. MB „Monteva“ (Lithuanian small partnership)

Case no.

Court of Appeal of Lithuania, Civil Case No. 2T-90-381/2019 (court process No. 2-60-3-00081-2019-2)

Court

Lietuvos Apeliacinis Teismas (Court of Appeal of Lithuania), Civil Division; Artūras Driukas (presiding and rapporteur), Danguolė Martinavičienė, Antanas Rudzinskas

Underlying award(s)

Award of 20 June 2019, Case No. 190/2018, International Commercial Arbitration Court at the Ukrainian Chamber of Commerce and Industry

Treaty

New York Convention 1958, Article V

Sector

Timber supply

Outcome

Award recognised and declared enforceable in Lithuania (24 October 2019).

Amount

Award: EUR 11,804.18 in total (EUR 8,083.50 principal debt, EUR 1,370.10 late-payment penalties, EUR 112.61 interest, arbitration fee, and EUR 971.60 legal costs). Costs of the recognition proceeding: EUR 400 awarded to V.P. (EUR 219 translation, EUR 181 legal services).

The dispute

V.P., a Ukrainian businessman, supplied timber to the Lithuanian small partnership MB „Monteva“ under contract No. 06/17 of 6 July 2017. MB „Monteva“ did not pay. V.P. brought arbitration before the International Commercial Arbitration Court at the Ukrainian Chamber of Commerce and Industry. By an award of 20 June 2019 (Case No. 190/2018), that court ordered MB „Monteva“ to pay EUR 11,804.18. V.P. then applied to the Court of Appeal of Lithuania for recognition and enforcement of the award. Procedural documents were sent twice to MB „Monteva“'s registered address but could not be delivered. The court treated them as duly served, and MB „Monteva“ filed no response.

Key holdings

1. Service was valid. Documents sent to a legal entity's registered address are deemed served 10 days after dispatch where personal delivery fails (Civil Code Art. 2.49(3); Code of Civil Procedure Art. 123(4)). ¶ 3
2. Article V of the New York Convention sets out an exhaustive list of grounds for refusal. The recognising court may not review the merits of the award. ¶ 6
3. The Article V(1) grounds apply only when the party against which the award is invoked raises and proves them. Because MB „Monteva“ filed no response, the court did not examine them. It checked only the Article V(2) grounds, which it must consider of its own motion. ¶¶ 7–8
4. Arbitrability (Art. V(2)(a)): claims for debt, interest and penalties arising from a contract between businesspeople can be arbitrated under Article 12 of the Lithuanian Law on Commercial Arbitration. ¶ 9
5. Public policy (Art. V(2)(b)) means international public policy and is construed very narrowly. The court found no circumstances showing that recognition would breach it. ¶¶ 11–12
6. The award was recognised and declared enforceable in Lithuania. V.P. was awarded EUR 400 in costs: EUR 219 for translation and EUR 181 for legal services. The legal fees were well below the maximum allowed under the Ministry of Justice Recommendations. ¶¶ 13–15; operative part

Procedural history

1. 6 July 2017V.P. and MB „Monteva“ sign timber supply contract No. 06/17.
2. 20 June 2019The International Commercial Arbitration Court at the Ukrainian Chamber of Commerce and Industry issues its award in Case No. 190/2018, ordering MB „Monteva“ to pay EUR 11,804.18.
3. 24 October 2019The Court of Appeal of Lithuania recognises the award and declares it enforceable, and awards V.P. EUR 400 in costs. The ruling takes effect on adoption and can 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)
• Danguolė Martinavičienė Judge, Court of Appeal of Lithuania
• Antanas Rudzinskas Judge, Court of Appeal of Lithuania

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Keywords

• New York Convention
• recognition and enforcement
• Article V(2)(a)
• arbitrability
• public policy
• international public policy
• ex officio review
• service of process
• default of respondent
• ICAC Ukrainian Chamber of Commerce and Industry
• Lithuania
• timber supply
• sale of goods
• Law on Commercial Arbitration
• costs

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