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BDO Law represented the client in the court and recovered the debt for the construction works

29 January 2019


In May of this year, a lawsuit between “Akers VKS”, a ventilation and conditioning systems company, and “Euro Luxe Trading Latvia”, developer of recreational complex “Vernisaza”, ended in a judgment in favour of “Akers VKS”, represented by law firm BDO Law. The lawsuit was initiated after “Euro Luxe Trading Latvia” refused to pay for the construction works performed by “Akers VKS”.


BDO Law assisted its client “Akers VKS” in recovering the debt by seizing the defendant's bank accounts, and after less than three years of litigation, which is a relatively short period of time for a case like this, “Akers VKS” saw the money transferred into its bank account.

The ventilation and conditioning systems company “Akers VKS” had performed works at the recreational complex “Vernisaza”. The works had been put into service, but the latest payments for the works were not received, and the “Vernisaza” developers were coming up with a range of questionable reasons to avoid payment. Law firm BDO Law points out that the debt recovery case was made difficult by the fact that the building of recreational complex “Vernisaza” was legally owned by a company registered in the Caribbean island of Angilsk, which was leased to the developer SIA "Euro Luxe Trading Latvia", with which all construction contracts were actually concluded.

In Latvia and elsewhere in the world, such an approach is used often, separating the company that owns the assets from the company taking responsibility for the commitments. In this way, the debt recovery may be seriously compromised once the judgment enters into force. There were other companies involved in the construction works of the recreational complex “Vernisaza”, who also filed claims to the developer of the project. “Akers VKS” was the only one who opted to enforce its rights in court.

“We had to take a somewhat creative approach in this relatively fast and effective litigation. Support from our international network member firms proved to be very helpful as well. It ensured rapid acquisition of information on a global scale, and enabled us to collect evidence efficiently and to foresee the procedural maneuvers of the opposing party,” comments attorney at law Rihards Niedra, BDO Law.

“Akers VKS” organized the works and payment correctly, dividing them into portions, but in this case, it was not sufficient, and the payment for final stages of construction had to be recovered in court. We recommend companies to follow this example by breaking down works and invoices, but, if necessary, to be confident and defend themselves in court in order to collect payment for the properly provided services,” adds Rihards Niedra.