Volvo wins dispute with insurance company over damage claim

The insurance company BALTA filed a claim against the Latvian company UNITRUCK, which specializes in truck conversions. BALTA sought damages of nearly EUR 469,000, in addition to statutory default interest, following a truck fire during the warranty period. COBALT’s client, VOLVO TRUCK CORPORATION, a truck manufacturer registered in Sweden, was involved in the case as a third party.  

The dispute originated from a fire that devastated a truck, provided by VOLVO and equipped with woodchipper machinery by UNITRUCK, within the warranty period. UNITRUCK and VOLVO contended that the fire was due to incorrect use of the truck and equipment, an exception to the warranty, rather than a fault in the manufacturer’s equipment.  

COBALT successfully demonstrated in all three court instances that the VOLVO truck, along with the equipment, had been operated in breach of the manufacturer’s usage instructions, thus activating the warranty exceptions. The dispute concluded with the decision of the Republic of Latvia’s Senate not to initiate cassation proceedings, thereby acknowledging that the second instance court’s assessment was entirely accurate. Representation of the client was ensured by COBALT Partner Sandija Novicka and Senior Associate Sabīne Zaula.