Many business owners assume that the key to winning a court case is proving that the other party has failed to fulfil its contractual obligations. If there is a signed agreement, an unpaid invoice and an outstanding debt, it seems only logical that the court will assess the facts and, if necessary, clarify the calculations.
However, in Latvian civil litigation, the situation is not always that straightforward.
In practice, success in court depends not only on whether the claim is legally justified, but also on whether the claimant has clearly demonstrated how the claimed amount has been calculated. Particularly in commercial disputes, the calculation of a claim often becomes one of the decisive factors in the outcome of the proceedings.
Consider a simple example. A company seeks to recover EUR 50,000 from its business partner, yet the statement of claim does not clearly explain how this amount was calculated after partial payments, set-offs or accrued interest have been taken into account. This raises an important question – is it sufficient to prove that the debt exists?
In many cases, the answer is no.
Latvian civil procedure is based on the principle that each party bears the responsibility for substantiating its own claims and submitting the evidence supporting them, while the court evaluates the evidence presented and applies the relevant legal rules. In other words, the court’s role is to resolve the dispute – not to replace a party in preparing or correcting the calculation of its claim.
This distinction is often more important than businesses initially realise. If the calculation of a claim is incomplete, inconsistent or lacks transparency, it may affect not only the quality of the statement of claim but also the court’s assessment of its merits.
This is particularly relevant in commercial disputes involving ongoing financial relationships. Partial payments, contractual set-offs, security deposits, contractual penalties, interest calculations and multiple interconnected invoices may significantly complicate the final amount being claimed. In such situations, simply stating the total amount is rarely enough. It is equally important to demonstrate how that figure has been reached and which evidence supports it.
In practice, this is one of the areas where businesses most frequently encounter difficulties. It is often assumed that if the underlying debt is genuine, any deficiencies in the calculation can be addressed during the court proceedings. However, relying on such an assumption may create unnecessary procedural risks and ultimately influence the outcome of the case.
The same considerations apply in disputes arising from construction projects, lease agreements, supply contracts and other commercial relationships where mutual settlements play a significant role. The more complex the financial relationship between the parties, the greater the importance of a clear, transparent and well-supported calculation of the claim.
For this reason, before commencing litigation, businesses should assess not only whether they have a valid legal claim but also whether every calculation is accurate, verifiable and properly supported by evidence. A thorough analysis of mutual settlements, payment history and interest calculations often determines how persuasive a claim will be and how effectively a company’s rights can be protected before the court.
A well-prepared calculation of a claim is not merely a procedural formality. In many commercial disputes, it becomes one of the key factors determining the outcome of the litigation.
Our law firm regularly assists businesses across Latvia with preparing statements of claim, analysing financial settlements, calculating debts and interest, and representing clients in commercial disputes where the proper substantiation of a claim can make all the difference.
Article written by: legal assistant Agate Sloboda