Mārtiņš Lauva loses dispute with basketball player Dāvis Bertāns over contract terms
The Supreme Court upheld a ruling rejecting 'BAA Rīga' claim against Dāvis Bertāns for 10% of his income, deeming the contract clause unfair.
Latvian national team basketball player Dāvis Bertāns has won a legal battle against SIA 'BAA Rīga', led by businessman Mārtiņš Lauva. The Supreme Court (AT) upheld the Riga Regional Court decision dismissing the claim for €1.6 million.
The dispute stemmed from a 2009 contract signed when Bertāns was a minor, with his parents acting on his behalf. The 15-year agreement required Bertāns to pay 10% of his net professional income, provided it exceeded €1,500 per month. Upon reaching adulthood, Bertāns terminated the contract, but 'BAA Rīga' sued for 10% of his then €16 million earnings.
Both the Riga Pārdaugava Court and the Riga Regional Court ruled the clause unfair and the contract void from inception. 'BAA Rīga' appealed, leading the Supreme Court to refer the case to the European Court of Justice (ECJ) for guidance on the Unfair Contract Terms Directive. The ECJ stated that such a clause could be unfair if not drafted in plain, understandable language, especially if the consumer was a minor at the time.
Based on the ECJ's findings, the Supreme Court concluded that Latvian courts had correctly applied EU law. The appellate court properly assessed the clarity and market consistency of the clause. The Supreme Court emphasized that a minor athlete would not have agreed to such compensation terms if treated fairly and equally. However, it noted that 'BAA Rīga' may still seek compensation for services actually rendered.
'BAA Rīga' was founded by Mārtiņš Lauva and Renārs Rutkis, and many future Latvian national team players like Dairis Bertāns, Jānis Strēlnieks, and Jānis Timma had contracts with the agency. Dāvis Bertāns earned about $85 million in his NBA career, and in 2024 he joined the Dubai team in the ABA League.
