Disputes and liability

Labour disputes

The inevitable element of labour relations is labour disputes, which unresolved or improperly resolved can expand, reduce the efficiency of work, worsen the general atmosphere in the workplace, cause negative tension and emotions inside the company.

We represent employers in disputes related to the damage caused by employees, losses caused by improper performance of the employees’ duties not only in Lithuania, but also outside of Lithuania (Europe, CIS countries).

We represent employees in cases of illegal dismissal, unpaid wages and other benefits related to wages, changing working conditions, fines imposed by the employer.

To avoid disputes, we consult employers on the prevention of labour disputes, prepare documents to manage the risk of labour disputes.

Disputes with consumers

The main obligation of the seller under the purchase and sale agreement is to transfer to the buyer the product that corresponds to the agreement, and if there are no instructions in the agreement, the product shall meet the usual requirements. Consumer purchase and sale agreements, in addition to the general provisions on the conformity of the products specified in the Civil Code of the Republic of Lithuania, sets out special rules of law on the increased protection of the rights of the buyer-consumer by establishing additional requirements to be met by the subject of the agreement, methods of defence of violated buyer’s rights in case a product of inadequate quality is sold to the buyer, the presumption of defects in a product, etc.

According to the general rule laid down by the CC of the Republic of Lithuania, the seller is responsible for any non-conformity identified at the time of delivery of the goods. The presumption of conformity with the agreement may be disproved by the buyer providing evidence of the existence of non-conformity. A rule deviating from this principle is that deficiencies in the quality of the item (product) which have become apparent within six months of their transfer, unless proved otherwise, shall be deemed to have existed at the time of their transfer to the consumer, unless this is incompatible with the nature of the product, service or deficiency thereof. In case of a dispute about the quality of the sold product, the fact that the sold product was defective, i.e., that the products do not meet the quality, quantity and other criteria set out in the agreement and, if there are no instructions in the agreement, the usual requirements, must be proved by the buyer.

We prepare documents for the Consumer Disputes Commission, whose decisions are binding on the parties and enforceable in accordance with the rules of the Civil Procedure. If the consumer or businessman does not agree with the decision of the Consumer Dispute Commission, they can apply to the court.

We represent both sellers and consumers for the performance of agreements concluded by consumers, sellers or service providers in the courts of general jurisdiction and for alternative dispute resolution when a dispute between two parties is examined by a neutral party.

Disputes with Lithuanian authorities

Businessmen in disputes with state authorities are usually unaware that specific type of dispute is not only examined by a separate category of courts, but also the administrative process itself has certain peculiarities. This means missed opportunities to appeal against decisions of public authorities, lost cases due to an incorrect choice of object of appeal, unsaved evidence, inconsistencies in position and possible serious consequences for further operation, such as loss of support received from the European Union.

We have practice in examining disputes by concluding peaceful agreements with following authorities:

• State Tax Inspectorate
• National Paying Agency
• Municipalities
• Public procurement contracting authorities
• State Territory Planning and Construction Inspectorate
• Other public administration authorities

Disputes with foreign authorities

Lithuanian business working with customers in foreign countries must follow the national legislation of that country, the country’s applicable directives, collective agreements provisions, administrative and other legal provisions. It is difficult for businessmen to understand the grounds of the violation itself, its validity, the possibility to appeal, the terms and the process after receiving documents from foreign institutions regarding various violations, which are usually committed by employees.  As a result, the possibility to appeal against the received decision is often missed, and inconsistent documents and arguments are presented which do not support the position.

We have a practice of preparing and submitting appeals to foreign public authorities regarding:

• fines received (for transportation of illegal immigrants, illegal transportation of goods, violations of working and rest time, cabotage operations, wages, oversizing, etc.).
• recovery of overpayments of taxes paid in a foreign country.
• application of double taxation in relation to income earned in another country and the obligation to establish a head office.

In one of our cases, we represented a client in a case concerning the transport of illegal goods (large quantities of cigarette smuggling) in the United Kingdom, which resulted in a fine for both the customer (company) and its driver, as well as confiscation of the car (truck).  The case was resolved in favour of the client without imposing a fine and returning the truck.

In our practice, all cases, more than a few dozen, were resolved in favour of the client, after decisions taken by the authority of another state: not to impose the fine, to reduce the fine, to distribute the amount of the penalty imposed on the client by convenient payment terms.

Unfair competition

There are often cases in business practice where employees with special knowledge i.e., those who know the peculiarities of a company’s business, have a relationship with customers, move to another company or start independent operation and use the information, which they have, to compete unfairly or to enable another company to do so.

We represent the interests of companies in cases of unfair actions related to use, transfer, publish information about the company’s customers, partners, competitors, business partner contacts, databases, commercial contacts, terms of transactions being concluded/concluded, financial information, company’s income, expenses, payment procedures and compensation to competing company or employee.

We represent the interests of our clients by filing claims for the performance and termination of illegal actions of unfair competition or by defending against such claims.

We consult on the application of specific measures to properly protect the business secrets of the company. We also prepare agreements on the protection of confidential information and business secrets, non-competition, negotiate the terms of specified agreements.