„Energesman“ sued VAATC over contract termination in court

„Energesman“ sued VAATC over contract termination in court

Ji Vilnius District Court is asking VAATC to be ordered to perform both contracts – that is, to restore the situation to what it was before termination, reported “Energesman”.

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“Energesman” has filed two separate lawsuits regarding the illegal use of the plant and the termination of modernization contracts. The court is also asked to prohibit VAATC from demanding guarantee payments of about 1.3 million euros from the insurance company, which VAATC has already requested to be paid.

“We aim to restore justice and continue managing mixed municipal waste in the Vilnius region and restore the modern plant as provided in the contracts. Only in this case will waste management not become more expensive for residents,” said Algirdas Blazgys, director of “Energesman”, in a statement.

According to the company’s lawyer Paulius Miliauskas from the law firm “Miliauskas and Lauraitytė”, Vilnius municipality and VAATC coordinated actions illegally, for example, the center cites decisions of the Vilnius City Emergency Operations Center (ESOC) and its head in documents, which had not yet been officially adopted.

Regarding the Vilnius ESOC decisions, “Energesman” has also already appealed to the Regional Administrative Court.

Last Friday, the Vilnius District Court rejected “Energesman”‘s request for interim protective measures – the company asked to suspend VAATC’s decision to unilaterally terminate the plant operation contract.

According to the court, such a decision was made considering the emergency situation related to the waste sorting crisis in the Vilnius region and the public interest.

“Energesman” told the court that VAATC took over the MBA plant before terminating the contract and did not allow “Energesman” employees in, so the company did not even have theoretical opportunities to correct violations.

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Meanwhile, VAATC explained that “Energesman” did not take action to correct violations, although some could have been fixed by the company using the MBA plant, and the company did not cooperate with VAATC. The center emphasized that interim protective measures would violate the public interest to ensure uninterrupted waste management in the Vilnius region.

The court noted that VAATC’s actions related to taking over the plant and involving other suppliers to manage waste are assessed not as actions confirming contract termination, but as measures to manage an extremely difficult and emergency waste management situation in the region.

As BNS wrote, VAATC announced on July 10 that it was terminating the contract with “Energesman” – the latter appealed to the Vilnius District Court, but in July the court rejected its request for interim protective measures and to suspend the unilateral contract termination for the first time.

The court then ruled that the contract had not yet been terminated because “Energesman” was given 20 working days to correct possible violations. This period ended on August 7.

“Energesman”, among other things, claims that VAATC has not yet returned the company’s property located on the plant’s territory, valued at about 3 million euros. VAATC removed part of the property from the plant’s territory without notifying the company.

Preliminary calculations show that “Energesman”‘s losses will amount to about 20 million euros, and they may increase further.

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Translated from

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