SIGNUM lawyers have Successfully Represented the Interests of the Client in Court Proceedings Relating to the Recognition of Pledge Agreements as Invalid

Our lawyers from the Dispute Resolution and Litigation division and the Contracts and Business Law division have successfully represented the interests of a manufacturer of specialized construction equipment realizing equipment under the terms of financial lease in the court of first instance and appellate court. A lessor claimed in court the lawfulness of pledging leased assets to the bank by a lessee without a lessor’s permission, the validity of such pledge agreements, concluded between the lessee and the bank of the assets received under the lease, and the redemption of leased assets.

Following complex legal proceedings, the court of first instance satisfied all the claims of our Client and recognized as illegal the pledging by third parties of assets owned by a lessor. The court also recognized the pledge agreements as invalid and ordered the release of the encumbered assets. The appellate court agreed with the decision of the court of first instance.