Claim for damages against Procurator dismissed by the Court

WALLESS Dispute Resolution team successfully represented a procurator of an insolvent limited liability company. 

The insolvency administrator filed a claim for joint and several recovery of damages from the company’s board member and the procurator, alleging that company documents had not been handed over. 

The Riga City Court dismissed the claim against the procurator in full. The judgment has entered into force. 

The court confirmed that a procurator acts within the authority granted by the management board and is liable only within that scope. A procurator cannot be held responsible for the board’s actions or omissions. As the Commercial Law does not specifically regulate procurator liability, general rules on authorised representatives apply. 

Responsibility for accounting and document transfer in insolvency lies with the board and cannot be delegated. 

Legal assistance was provided by WALLESS Partner Sandis Bērtaitis and Senior Associate Laura Baumane.