We have successfully defended the client at court

Deloitte Legal represented a long-term client at court - UAB TECE BALTIKUM in the case for award of damages (losses) from the former managers of the client's debtor (bankrupt company), and is happy having protected the client's interests.

In 2020, Evaldas Lukauskas, an advocate of Deloitte Legal, successfully defended the interests of a long-term client in a civil case under the indirect lawsuit against the defendants - several former managers of the client's debtor (at that time, already a bankrupt company). By the lawsuit, we accused such managers of violating their statutory obligation to apply to the court in due time (i.e. at least few years earlier than it was actually done) to commence bankruptcy case to their company, that was at the time already insolvent.

Both, Kaunas City County Court that examined the case, and later on - Kaunas District Court satisfied such indirect lawsuit of our client (#CivilCaseNo.e2A-642-657/2020). The courts awarded all the damages (losses) caused by the former managers to the bankrupt company, and to our client - the litigating costs incurred by him. In such cases, the damages (losses) suffered by the company is deemed as increase (difference) in the company's overall debts’ level, from the moment the company has actually become insolvent. After recovering the damages awarded by the courts from the former managers of the company, the funds received will be distributed in bankruptcy proceedings among the company's creditors (i.e. to our client).

Therefore, in such and similar situations, in case the bankruptcy trustee of your debtor (bankrupt company) does not show the initiative to properly assess the actions of company’s former managers and the impact on bankruptcy of such company (i.e. breach of statutory and fiduciary duties of the managers, misappropriation of funds and assets, dishonesty, etc.), the existing case law of the Supreme Court of Lithuania can be relied on, and the creditors of a bankrupt company have the right to file (by themselves) the indirect lawsuits against such former managers and raise the question of their personal liability (for the debts incurred).