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Cobalt Wins Dispute with Balta over Damage Claim Involving Volvo Truck

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Cobalt has successfully represented Swedish truck manufacturer Volvo Truck Corporation in a dispute initiated by Balta against Latvian truck conversion specialist Unitruck.

According to Cobalt, Balta had claimed nearly EUR 469,000 in damages plus statutory default interest following a truck fire during the warranty period. The dispute arose when a Volvo truck, equipped with woodchipper machinery by Unitruck, caught fire. Both Unitruck and Volvo argued that the incident resulted from incorrect use – an exception to the warranty – rather than a defect in the manufacturer’s equipment.

According to the firm, following proceedings before three court instances, Cobalt demonstrated that the truck and equipment were operated in breach of Volvo’s usage instructions, thereby activating the warranty exceptions. The dispute concluded with the Republic of Latvia’s Senate declining cassation proceedings, effectively upholding the second instance court’s decision.

The Cobalt team included Partner Sandija Novicka and Senior Associate Sabīne Zaula.

Cobalt at a Glance

COBALT is a closely integrated alliance of top-tier law offices across the Baltics, uniting more than 250 attorneys and support staff. During 25 years of experience, we have become a strategic partner to our clients in handling both daily matters and complex large–scale transactions and disputes.

The firm’s broad spectrum of expertise and established position as the market leader gives a comprehensive basis for providing full-service business law advice.

Top international and regional businesses, financial institutions, state and local governments, and the region’s most promising start-ups are among our clients. We offer leading-edge solutions in key industry sectors: Consumer Products, Trade & Distribution, Real Estate & Construction, Pharmaceuticals & Healthcare, Energy & Utilities, Communications, Media & Technologies, Financial Services, Transport & Logistics.

COBALT has been named Baltic Law Firm of the Year 7 times receiving Chambers Europe, IFLR, The Lawyer and Mergermarket awards, and we are regularly listed amongst the top-performing M&A legal advisors in the Bloomberg, Refinitiv and Mergermarket deal tables. Recognized as the No.1 Lithuanian law firm in the Prospera Law Firm Review 2021 and No. 1 law firm in Latvia in 2022, 2020, 2019, and 2018 client satisfaction surveys. We were recognized as a Baltic-wide Law Firm of the Year at the 2022 Chambers Europe Awards ceremony and named the Baltic States Tax Firm of the Year and Pro Bono Firm of the Year at the annual ITR EMEA Tax Awards 2021 ceremony. 

More information on COBALT can be found at www.cobalt.legal.