Ellex successfully represented Litesko in reaching an amicable settlement in the private-public sector dispute over the Alytus city Heating & Electricity Infrastructure

A joint team of Ellex Valiunas experts from the business disputes resolution and energy law practices successfully assisted UAB “Litesko” (part of Veolia group of companies) in concluding a peaceful settlement agreement and ending legal disputes with Alytus City Municipality and UAB “Alytaus šilumos tinklai” (municipal company) regarding the Alytus city heating and electricity infrastructure that lasted for several years.

Litesko, represented by Ellex Valiunas, together with Alytus City Municipality and the municipal company signed a comprehensive settlement agreement, which concluded legal disputes pending in the courts since 2016. The court cases in question dealt with complex issues requiring expertise in civil and energy law.

After 8 years of litigation, the parties have amicably agreed on mutual compensations. Among them, the parties agreed on compensations for additional investments made by the Ellex Valiunas’ client to modernise the Alytus heating infrastructure, including an investment into the Alytus biomass cogeneration power plant which was erected and installed by Litesko. The power plant, which is currently operated by the municipal company, enabled the use of biofuels for heat production in Alytus city and reduced natural gas consumption by almost 18 million cubic metres per year. Under the signed agreement, Ellex Valiunas’ client will recover a settlement amount of several million euros.

Ellex Valiunas’ team has successfully represented Litesko at all stages of litigation and facilitated an amicable settlement, thus ensuring a more effective and sustainable restoration of legal peace between the parties. During the dispute, the parties also made use of judicial mediation, an alternative dispute resolution mechanism, which has recently gained popularity in Lithuania. The successful outcome is an excellent example that the possibility of an amicable and mutually satisfactory settlement also exists in the case of disputes between the private and public sectors, and the team of Ellex Valiunas is pleased to contribute to the development of this practice in Lithuania.

The client’s interests were represented by the firm’s experts within the dispute resolution and energy law: partners Dovilė Greblikienė and Miroslav Nosevič, senior associates Simona Budreikaitė and Karolina Nauronė and associate Aušra Zabulionytė.