Supreme Court rejects BAA Rīga's claim against Dāvis Bertāns

The Supreme Court of Latvia has issued a final decision in the legal dispute between SIA "BAA Rīga" (Basketball Development Agency) and Latvian basketball player Dāvis Bertāns, rejecting the agency's claim for €1.6 million. The amount represented 10% of Bertāns' earnings from his professional basketball career up to that point.

The case stems from a 2009 contract between the then-minor Bertāns, represented by his parents, and BAA Rīga. The 15-year agreement stipulated that Bertāns would pay the agency 10% of all income from basketball and related activities. After turning 18, Bertāns terminated the contract, prompting BAA Rīga to sue.

Both the Rīga Pārdaugava District Court and the Rīga Regional Court had previously ruled that the contract clause was unfair and the contract void. BAA Rīga appealed to the Supreme Court, which sought guidance from the Court of Justice of the European Union (CJEU). The CJEU stated that such a clause could be unfair if not drafted in plain, understandable language, and that the consumer's minority at the time of signing was a relevant factor.

Based on the CJEU's conclusions, the Supreme Court found that the Latvian courts' earlier rulings were correct. The compensation clause was not clearly understandable, and the balance of economic interests between the parties was not maintained. However, the Supreme Court noted that BAA Rīga might still be entitled to compensation for services actually provided, though that was not addressed in this case.

Dāvis Bertāns has earned nearly $85 million during his NBA career and currently plays for the Adriatic League club "Dubai." BAA Rīga was founded by businessman Mārtiņš Lauva and others, and has worked with several Latvian national team basketball players.