Deals

“Outstanding strategic thinkers.” (The Legal 500, 2016)

08.11.2018

DERLING PRIMUS successfully represented Luminor Liising AS in a litigation concerning the possibility of bona fide acquisition of leased assets

The Supreme Court decided in its ruling of 2 November 2018 that Luminor Liising AS had the right to reclaim leased assets, which the lessee had transferred to third parties, from illegal possession even though Luminor Liising AS had filed a claim against the lessee for compensation for damage caused by the transfer of the assets in bad faith. Thus the court agreed with the position of Luminor Liising AS that compensation for damage does not preclude the right of the owner of an asset to demand recognition of the right of ownership and to reclaim the asset. The right of ownership is an absolute right and therefore always prevails over claims for removal of the consequences of violation of the right of ownership.

The case will also serve as an important guide in the question of what actions should be expected of an acquirer of an asset to allow for the acquisition of the asset in good faith. The more exceptional are the circumstances characterising the sale of an asset (for example, if an asset is usually purchased on an instalment plan or under a leasing agreement), the more thoroughly the acquirer of the asset should verify the origin of the asset.

Luminor Liising AS was represented by Erki KergandbergKadri Lember and Evelin Prunt.

Contacts

Estonia

Liivalaia 45, 10145 Tallinn
Kaluri 2, 51004 Tartu

Latvia

Sporta str. 11, LV-1013, Riga

Lithuania

Konstitucijos av. 7,
LT-09308, Vilnius

Subscribe for newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.