Legal and regulatory shifts in one country are no longer isolated events, they increasingly influence approaches and expectations in neighbouring markets. Baltic law firm COBALT has published its annual Baltic Disputes Market Overview 2025, offering a regional snapshot of the key litigation and regulatory developments shaping Estonia, Latvia and Lithuania.
Disputes Shaped by Compliance and Decision-Making Quality
A clear theme runs through this year’s overview: courts and authorities are placing greater emphasis on well-substantiated reasoning and procedural quality. Documentation, consistency in internal processes and robust evidentiary standards have become central across multiple areas of law.
In employment disputes, expectations around workplace conduct are tightening, and new considerations, including so-called “soft values”, are increasingly reflected in cases. Termination-related disputes remain common, with courts highlighting the importance of proper documentation and consistent workplace practices.
In construction disputes, parties continue to rely on negotiated and court-mediated settlements to avoid lengthy litigation. Across the Baltics, disputes centre on two main areas: large-scale infrastructure and residential real estate projects. Major infrastructure developments, particularly Rail Baltica, remain a key source of litigation. Delays, cost overruns and challenges to building permits have brought contract performance and risk allocation into sharp focus, especially between the state, project companies and contractors.
Digital and intellectual property matters also remain in focus. In Estonia, data protection enforcement intensified, including the imposition of a record fine and a rise in breach notifications. Several high-profile incidents have demonstrated how quickly inadequate safeguards can escalate into violations, investigations and costly disputes.
Regulatory enforcement expands across key sectors
Competition law saw notable shifts across the Baltics in 2025. In Estonia, the ECN+ Directive strengthened the Competition Authority’s powers, likely leading to more investigations and higher fines. The new rules have already sparked debate and may result in further disputes. In Latvia, the Supreme Court issued landmark rulings, tightening standards for private damages claims and prohibiting the use of covert criminal surveillance data in competition cases. In Lithuania, courts focused more on fundamental legal questions, including referring a key case to the EU Court of Justice, while also applying stricter scrutiny to certain decisions of the competition authority.
White-collar crime saw notable developments across the Baltics in 2025. In Estonia, a new Prosecutor General prioritised efficiency, while debate continued over enforcement focus, particularly in cases involving public officials. Companies are encouraged to conduct internal investigations when facing economic crime allegations. In Latvia, sanctions and tax-related cases remained central. Legislative amendments strengthened penalties for serious sanctions breaches, and the Constitutional Court reinforced fair trial standards in confiscation cases. In Lithuania, liability for certain abuse-of-office offences was eased, while courts continued to impose prison sentences for bribery and addressed high-profile public order cases.
Insolvency, corporate and tax disputes reflect structural shifts
Insolvency trends eased across the Baltics in 2025. Estonia saw a slight drop in bankruptcies and fewer reorganisation cases, although new restructurings have so far been successful. Latvia also recorded fewer insolvency proceedings, while courts approved more restructuring plans than in the previous year. In Lithuania, bankruptcies declined, but restructuring cases increased sharply, largely due to the AUGA Group case.
Corporate disputes remained largely stable across the Baltics in 2025. In Estonia, attention focused on board member liability and shareholder disputes, mainly concerning profit distribution and meeting decisions. In Latvia, dispute patterns remained similar, with the Supreme Court clarifying the effect of interim measures in shareholder cases. In Lithuania, shareholder and management disputes continued to dominate, while upcoming legal amendments may influence future conflicts.
Public procurement volumes declined across the Baltics in 2025. Estonia and Latvia saw lower overall contract values, while Lithuania recorded a drop in both value and number of procedures. At the same time, green and quality-based procurement increased, particularly in Estonia and Lithuania. Disputes remain active, and legislative reforms are underway in Estonia and Latvia.
Tax disputes in 2025 focused on enforcement and evidentiary standards across the Baltics. In Estonia, courts addressed board members’ tax liability and clarified the burden of proof in tax assessments. Latvia saw fewer audits but maintained a continued focus on VAT and compliance issues, alongside constitutional challenges to new tax rules. In Lithuania, courts dealt with VAT, corporate tax and exemptions, emphasising strict compliance while applying proportionality in penalties.
The overview draws on COBALT’s experience, as well as publicly available information and noteworthy disputes handled by other law firms, with the aim of offering a grounded snapshot of where the disputes landscape is heading. We hope this report serves as a useful resource for businesses, legal practitioners and policymakers navigating disputes in the Baltic region.
The full Baltic Disputes Market Overview 2025 can be found here: https://www.cobalt.legal/wp-content/uploads/2026/02/Baltic-Disputes-Market-Overview-5.pdf
Article by: Managing Partners Jaanus Mody, Lauris Liepa and Partner Professor Dr Rimantas Simaitis