COBALT successfully represents defendants in creditor’s claim against the former Board members of the debtor

COBALT successfully represented defendants in the claim brought by Jūrmala City municipal company as a creditor, claiming personal liability of the liquidated debtor’s former Board.

Following the judgment of the Court of First Instance, which was unfavourable to the defendants, the Court of Appeal upheld the appeal by the COBALT clients, finding that the creditor’s claim was unfounded and must be rejected in its entirety. The Court of Appeal confirmed that by not exercising creditors’ rights within the liquidation proceedings of its debtor, the plaintiff has lost its right to bring a creditor’ claim against the Board members of its debtor, and is not entitled to claim any personal liability from them either.

The Supreme Court of the Republic of Latvia rejected to initiate cassation proceedings upon the plaintiff’s claim, as the result of which a judgment of the Court of Appeal favourable to COBALT customers came into effect, and cannot longer be appealed.

The client representation was ensured by COBALT Associate Marija Berdova.