On 28 October, the Department of Civil Cases of the Supreme Court decided to reject application filed by insolvent company registered in Lithuania “flyLAL-Lithuanian Airlines” JSC on recognition, enforcement and securing of enforcement of a foreign ruling against “Starptautiskā lidosta „Rīga”” SJSC and “Air Baltic Corporation” JSC. As the main arguments of the decision the Department of Civil Cases mentioned the fact that consequences of recognition would be contrary to social order of the Republic of Latvia and would endanger national security of the Republic of Latvia. Complete text of the decision with justification will be available on 4 December. The decision of the Supreme Court may not be appealed.

At the same time, the Department of Civil Cases adopted the ancillary decision to inform the Saeima (Parliament), the President of the State and the Cabinet of Ministers of the Republic of Latvia about possible violation of Article 1 of the Constitution, by not envisaging in legal provisions of the Republic of Latvia restrictions on property status of infrastructure objects of state security, and restrictions on operations with them in field of private law.  

The Supreme Court examined the case in the court hearing on 14 October, due to ancillary complaints filed by the state joint-stock company “Starptautiskā lidosta „Rīga”” (Riga Airport) and joint-stock company “Air Baltic Corporation” against decision of Riga regional court, recognising the decision of the Court of Appeal of Lithuania on determination of claim collateral in favour of insolvent Lithuanian airline company FlyLAL. In the court hearing, the court satisfied two pleas filed by Riga Airport. Riga Airport asked to annex the decision of the Court of Appeal of Lithuania rejecting the application on cancellation of claim collateral to the case. In the second plea, the Riga Airport asked to annex statement by the Competition Council of Lithuania on the case being examined on the merits in Lithuanian court of the first instance, to the case file.  The court also satisfied plea filed by “Air Baltic Corporation” JSC to annex copy of minutes of hearing of December 2014 held in Vilnius regional court to the case. The court satisfied plea filed by the applicant, “flyLAL”,  to annex evidence on commercial pledges issued by respondents, to the case.  

On 31 December 2008, the Court of Appeal of Lithuania upheld the decision of Vilnius regional court to arrest property of Riga Airport and “Air Baltic Corporation” JSC of value of almost 200 million Lithuanian litas (40 765 320 Latvian lats), claimed by “flyLAL”, blaming “Air Baltic Corporation” JSC of unfair competition.

The Supreme Court of the Republic of Latvia had filed a reference for preliminary ruling to the Court of Justice of the European Union, asking how the Regulation of the EU on recognition of a court ruling of another Member State should be construed.


Information prepared by Baiba Kataja, the Press secretary of the Supreme Court
Telephone: 67020396; e-mail: baiba.kataja@at.gov.lv