Construction company challenges adverse judgment in $65.4 mln dispute with airline
MOSCOW, January 13 - RAPSI, Alyona Yegorova. An appeals court will hear on February 16 a construction company's appeal against a court judgment awarding the KD Avia airline $65.4 million, the court told the Russian Legal Information Agency (RAPSI/rapsinews.com).
KD Avia and the GS Corporation entered into a contract in 2004, whereby the GS Corporation was to construct terminals at a Kaliningrad airport. KD Avia paid for the work, but later argued that the contract was invalid because it was incomplete - neither the subject nor the terms of the contract had been agreed upon. KD Avia sought to recover from the defendant the amount of unjust enrichment for a period beginning February 2007. It filed suit with the commercial court in September 2009.
KD Avia initially sought to recover 2.5 billion rubles ($78 million). However, the Moscow Commercial Court awarded it 1.658 billion rubles ($52.3 million) on November 15 as the principal sum - the difference between the advances that it received and the work it actually carried out - and 415.9 million rubles ($13.1 million) in interest. The court also declared the contract invalid as it missed several critical terms, such as the completion deadline.
KD Avia was based in Kaliningrad. It operated from 2002 until 2009. KD Avia operated scheduled flights within Russia, the CIS and Europe from the Khabarovo airport in Kaliningrad.
KD Avia filed for bankruptcy with the Kaliningrad Regional Commercial Court in September 2009. According to the application, its liabilities totaled over 11.7 billion rubles ($365.4 million). The airline has been under administration since October 2009. The court declared KD Avia bankrupt on November 11, 2010.