READD successfully represents a client in an international trade dispute over the recovery of more than 1 million euros

With the Senate of the Republic of Latvia refusing to institute cassation proceedings in civil case No. C771171122, the judgment of the Riga Regional Court has entered into force, under which an amount exceeding one million euros was recovered in favor of READD client.

The dispute was based on a prolonged delay in the delivery of custom-manufactured industrial equipment, as well as identified non-conformities of the goods. In the adjudication of the case, the application and interpretation of the United Nations (UN) Convention on Contracts for the International Sale of Goods (CISG) played a decisive role – a legal framework that has been analyzed relatively rarely in Latvian judicial practice.

Given the specific nature of the CISG and the limited extent to which such issues have been examined in Latvian case law, the READD team developed in-depth legal arguments addressing the interplay between international legal practice and domestic law. One of the central issues was whether prolonged delays in the delivery of specially manufactured equipment, together with non-conformities subsequently identified in the goods, constituted a fundamental breach of contract within the meaning of Article 25 of the CISG, thereby entitling the buyer to avoid the contract pursuant to Article 49 of the CISG.

As a result, an entirely favorable outcome for the client was achieved, establishing an important precedent for the application of the CISG in Latvia.