Lithuania
1. Are freezing orders (or their equivalent referred to below) available in civil legal proceedings in this jurisdiction and what is their effect?
Yes. Freezing orders are available in civil proceedings in Lithuania. Freezing orders may restrict the respondent from dealing with its assets and may impose other obligations on the respondent.
2. Are other interim orders commonly made in conjunction with a freezing (or equivalent) order?
The Court is entitled to apply interim measures, however the value of these measures cannot exceed the amount at stake in the claim.
3. Briefly what is the relevant legal test?
The Court may decide to grant a freezing order when the following conditions are met:
(i) there is a reasonable justification for the claim, meaning that the Court performs a preliminary evaluation of merits of the claim; and
(ii) implementing the Court’s decision would become more difficult or impossible in the absence of a freezing order.
4. Briefly what is the process for obtaining a freezing (or equivalent) order?
The applicant makes an application to the Court and pays the necessary fee. The application can be submitted:
(i) before the claim is lodged with the Court;
(ii) as part of the claim itself; or
(iii) at any later stage of the Court process.
The Court will provide a written decision in three business days or in exceptional cases in seven business days of the application. The defendant will only be informed about the process after the Court decision regarding interim measures is made, unless the Court considers it necessary to inform the defendant beforehand (for example, in cases when it is necessary to get additional information from the defendant).
5. Does the applicant have to provide any form of security or commit to compensation if its claim is ultimately unsuccessful and any freezing (or equivalent) order granted causes loss and damage to the respondent?
If it pays the required fee, the applicant can request that the Court applies interim measures. However, the respondent may request that the Court require the applicant provide a cross undertaking in damages (which can in certain circumstances be ordered to be backed by security, either a bank guarantee or the payment of monies into Court). If the required security is not provided, the Court is obliged to discharge the freezing order.
6. Can it be sought against third parties?
Yes, in some cases. For example, the Court may restrict a third party from transferring assets belonging to the respondent or performing other obligations on behalf of the respondent. Movable assets, funds or property rights physically held by third parties but belonging to the respondent might also be caught by the terms of a freezing order. Depending on the circumstances, interim measures bind the third party as soon as (1) he/she is informed by the Court or bailiff of the measures taken or (2) the freezing order is registered in the public registry.
7. What assets are covered by a freezing (or equivalent) order?
Real estate, movable assets, titles to property/property rights, account balances, cash, etc.
8. Can a freezing (or equivalent) order be made in support of substantive proceedings abroad?
Yes. An application for a freezing order in support of substantive proceedings abroad can be submitted to Vilnius Regional Court.
9. Can a freezing (or equivalent) order be made in support of arbitration proceedings or awards?
Yes. An application in relation to foreign or local arbitration proceedings can be submitted to Vilnius Regional Court.
10. At what stage of proceedings can a freezing (or equivalent) order be sought?
At any stage, including prior to the submission of the claim (in which case the application must explain why the claim has not yet been submitted), or at any later stage in the proceedings.
11. Are there typically any exceptions to the general prohibition on the respondent’s use of assets subject to a freezing (or equivalent) order?
Yes, the law establishes various exceptions. The law establishes certain categories of assets which cannot be the subject of a freezing order where the respondent is a natural person. These include:
(i) household, work or study items that are necessary and used on a daily basis;
(ii) items which are necessary for use by children and people with disabilities/who are in receipt of social benefits; and
(iii) specific types of employment related payments.
Additionally, the Court can direct that other sums be made available to the respondent for certain purposes specified by the Court.
12. What happens after a freezing (or equivalent) order is granted?
Once a freezing order is granted, it must be urgently implemented and be immediately served on the applicant and the defendant (and the manager of the public registry if necessary). Where interim measures are related to movable property or the Court is not aware of the scope and amount of the assets held by the respondent, the applicant may apply to the bailiff for an order requiring the respondent to provide an account of his assets.
13. Who pays the costs of the application for a freezing (or equivalent) order?
The applicant pays the costs of applying for interim measures. The losing party may be ordered to pay the costs related to obtaining and enforcing the freezing order, which may be determined as part of the assessment of the litigation costs at the conclusion of the litigation.
14. What protections are there typically in a freezing (or equivalent) order for third parties to such orders?
Legal regulation requires the fault of a third party to be proven for them to have any liability.
15. What are the consequences of breach of a freezing (or equivalent) order?
A fine of up to EUR 300 per day may be imposed by the Court on persons who violate the terms of the freezing order. In addition, the applicant is entitled to recover from those persons the losses resulting from non-compliance with the freezing order.
16. Does a third party notified of (but not a party to) a freezing (or equivalent) order owe a duty of care to the applicant (meaning it can be liable to the applicant for non-compliance)?
Yes.
17. Can a freezing (or equivalent) order be enforced abroad?
Freezing orders issued by Lithuanian Courts can be enforced abroad. The question of enforcement will be subject to the laws of the relevant jurisdiction, relevant treaty, EU Regulation or Convention.
18. Can freezing (or equivalent) orders from overseas jurisdictions be enforced in this jurisdiction?
Yes. The Courts of the Republic of Lithuania may recognize and enforce rulings of foreign Courts regarding interim measures. A foreign order can be enforced in Lithuania subject to the following conditions:
(i) the decision has to be recognized by the Court of Appeal of Lithuania; and
(ii) the decision is enforceable in the state whose Court has adopted the decision.
The applicant needs to provide documents confirming that the decision is enforceable in the originating jurisdiction. Decisions of foreign arbitration Courts are enforced by the New York Convention 1958 and the Law on Commercial Arbitration of the Republic of Lithuania.
Contacts
Rimtis Puišys Partner Eversheds Saladžius Vilnius, Lithuania rimtis.puisys@eversheds.lt www.eversheds-sutherland.com Vainius Šarmavičius Associate Eversheds Saladžius Vilnius, Lithuania vainius.sarmavicius@eversheds.lt www.eversheds-sutherland.com
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