We successfully represented Lithuanian Railways against supplier Civinity Solutions (Civinity) in a dispute regarding compensation of EUR 700,000 damages.
Civinity laid the groundwork for this dispute in 2022, when it won a case and proved that a competitor’s tender offer was unjustly selected as the winner. Since the contract with the competitor had already been concluded and being successfully executed, Civinity decided to launch a claim for loss of profit against Lithuanian Railways.
During the case, the Sorainen team successfully proved that Civinity did not meet the qualification requirements of the tender procedure, which was executed in 2021 and had already ended. The team’s defense strategy involved a meticulous review of the tender procedure and a comprehensive presentation of evidence to the courts. The Court of 1st Instance and the Court of Appeal upheld the position that Civinity could not have been declared the winner in the tender procedure. Consequently, Civinity’s claim for loss of profit was dismissed in full.
This unique case featured not only complex legal questions but also experts’ economic analysis of alleged profits, which also had to be analysed and disproven by the courts. The successful case forms a precedent for the future, requiring the suppliers to critically evaluate compliance of their own tender offers before launching claims for loss of profit against contracting authorities.
Our team representing the client
Our client was represented by partner Kazimieras Karpickis, counsel Edgaras Markevičius, PhD and associate Monika Balčaitienė.
