The cost of action by a disloyal leader is the award of all wrongly earned funds.
The Kaunas Regional Court has examined the dispute between the Lithuanian Powerlifting Federation and its former President. The Federation applied to the Court by questioning the honesty and loyalty of the former President in organising the European Powerlifting Championships.
The Kaunas Regional Court found the doubts of the Federation to be justified after finding that the President had benefited from the organised Championship without informing the Executive Committee and acting through another entity under his control, i. e., he earned the income to his managed sports club the Federation could have earned.
The Court found that the transfer of profitable activities from the Federation to an entity under his control was incompatible with the standards of loyalty and honesty applicable to the President. By raising his Personal interest over the interest of the Federation, the President caused damage to the Federation in the form of lost income that the Court awarded to the Federation.
The Attorney-at-Law of Vilnius Law Firm SPES represented the Federation in this case.
The Law Firm’s client accused of illegal enrichment has been acquitted.
The Kaunas Regional Court acquitted the client represented by the Law Firm who has been accused of illegal enrichment.
After having assessed the data on the accused person’s income and expenses since 1981, the fact that the accused person worked all his life and had businesses, his age, non-bank savings, and concluded civil transactions (gift, loan, use), the Court ruled that it could not be unequivocally concluded that the person had obtained the funds for the acquisition of a residential house and other structures illegally or that he knew that the property in his possession could not be acquired with legal income.
The Court has clarified that legal doctrine obliges to give preference to a law interpretation method that would be less restrictive of the rights and interests of private legal entities and would produce less severe or painful results for these entities and for society as a whole. The identical discrepancy of the assets under ownership alone with the income received does not draw a reasonable conclusion as to the existence of unlawful enrichment.
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