Dispute Resolution practice News 2024 | 4

24 January, 2025

_{The Ellex Dispute Resolution Practice has prepared an overview on news in the final quarter of 2024, and it includes both amendments to the legal framework and practical information on planned changes to the regulation governing dispute resolution. We also offer an example of a case law on the choice of applicable law for a transaction.}

_{Currently, the Saeima is considering extensive amendments to the Civil Procedure Act, which include a reform of state fees and improve debt collection by notice. The amendments provide for setting a cap of the state fee at EUR 25,000 for claim amounts starting from EUR 750,000. We recommend businesses planning to initiate new legal proceedings to follow the changes in the law and choose the most optimum time to initiate them.}

_{We would like to draw attention to the draft amendments to the Criminal Procedure Act and the Act on the Execution of Confiscation of Proceeds from Crime developed by the Ministry of Justice and submitted to the Saeima, establishing a procedure for managing shares of a limited liability company or a public limited company seized in criminal proceedings. The purpose of the legislative bills is to ensure the management of shares preventing situations where they may forfeit their value, thereby reducing the possibility of compensating the victims for the damage caused or returning them to the rightful owner after the seizure is lifted.}

_{Conversely, in our review of the case law, we raise an issue of the importance of the applicable law in claims where a creditor challenges transactions concluded by a debtor with third parties that are detrimental to the creditor’s ability to receive performance of the obligation from the debtor. The choice of the applicable law may be decisive not only in terms of validity and execution of the transaction, but also in potential disputes with both business partners and creditors.}

_{We sincerely hope that the information contained in this news overview will be useful in the daily business of our clients and planning thereof as well. We kindly invite you to contact us for more detailed comments or answers to questions that are important for successful business operations.}

_{Ellex Dispute Resolution Practice}