The Court clarified in the public procurement case that a tender with a negative value shall not, in its own right, be considered as illegal
Attorney-at-law of Vilnius law firm SPES succeeded in convincing the court that the Central Procurement Organisation implemented legal and transparent public procurement procedures, which resulted in contract being awarded to the supplier offering a negative price for telecommunication services.
The court hearing the case held that tenders containing negative (minus) value shall not, in their own right, be regarded as abnormally low tenders. It is up to the contracting authority to decide whether, in light of the specific nature of the services being procured, the offered price looks as abnormally low and whether a justification thereof shall be required. The fact of a negative tender value itself does not prove that the supplier will be unable to perform a public procurement contract.
In the dispute at hand the court also clarified the meaning of a preliminary agreement in public procurement to the effect that a preliminary agreement in public procurement is not a type of procurement, but rather a separate procurement procedure, an organisational instrument, allowing to minimise the administrative burden of procuring entities. According to the court, a supplier which is a party to a preliminary agreement, at the point of execution thereof only becomes entitled to compete for the right and obligation to perform an order placed by the procuring entity under a preliminary agreement once a renewed competitive procedure among the suppliers is launched, but no exclusive rights to perform orders placed by a contracting authority are provided during the validity of a preliminary agreement.  

Reorganisation process successfully finalised

The reorganisation process of two clients of the law firm SPES, two private limited liability companies, has been successfully finalised. As a result of the reorganisation, one legal entity was merged with the other company, the latter taking over all rights and obligations of the legal entity under reorganisation. Lawyers of the law firm were involved in drafting the terms and conditions of the reorganisation, resolutions by managing bodies, as well as other documents necessary in the process of reorganisation, and provided legal advice throughout the reorganisation process. The reorganised company is successfully continuing its business.

  • OCTOBER 2020

    The interests of the former director of a bankrupt company were defended.The firm’s lawyer successfully represented the interests of a client — the former director of a bankrupt company — in civil proceedings for recognising the bankruptcy as fraudulent.The administrator of the bankrupt company applied to the court asking to declare the compan...

  • SEPTEMBER 2020

    The court ruled on the right of the insurer to change the grounds for refusal to pay out an insurance benefit.We defended the client’s interests in a civil dispute with the insurance company over award of the insurance benefit and damage. The court which has heard the case in its judgement, inter alia, stated that the insurer must investigate the circumst...

  • AUGUST 2020

    The court has resolved a dispute between the Ministry of Foreign Affairs and a citizen of the Republic of Lithuania imprisoned in the USA on whom a capital punishment has been imposed.An attorney-at-law of the law firm has successfully represented a client, i.e. the Ministry of Foreign Affairs, in the dispute with a citizen of the Republic of Lithuania imprison...

  • JULY 2020

    We have proven that our client conducted a lawful and transparent public procurement. We represented our client, i.e. waste management system organiser, in a dispute which has arisen out of the legal relations of public procurement. The attorneys-at-law of the law firm successfully proved that the client conducted a transparent and lawful public procuremen...

  • JUNE 2020

    The court ruled on the possibility of applying subsidiary civil liability to the head of a legal person in case the company does not properly fulfill the obligation to pay taxes to the state on time. Attorney at Law of our firm succeeded in defending a client’s interests in the court of appeal. The State Tax Inspectorate (STI) sought to prove that be...

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