MOSCOW, September 25 - RAPSI. The Moscow District Federal Commercial Court has upheld the appellate court's decision to dismiss Glavmosstroy's $11 million lawsuit against the Moscow government, the court told the Russian Legal Information Agency (RAPSI/rapsinews.com) on Tuesday.

The company sought damages that allegedly resulted from the disruption of an investment contract to build four blocks of luxury housing in the capital.

The developer's appeal has been turned down.

Glavmosstroy is controlled by Russian oligarch Oleg Deripaska.

In June, the Ninth Commercial Court of Appeals rejected the company's claim against the Moscow Mayor's Office.

The court held that the contract could not be terminated under judicial procedure, as it had already become ineffective and the city government's fault in causing the losses had not been proven.

The appeals court reversed the Moscow Commercial Court's March judgment to collect 346.6 million rubles ($11 million) in damages as opposed to the 351.3 million rubles ($11.2 million) claimed.

According to Glavmosstroy, the lawsuit stems from an August 2004 investment contract. The project eventually collapsed because the city authorities failed to provide sites to relocate the residents whose homes were to be demolished under the project.

Nevertheless, the company spent some 360 million rubles ($11.5 million) in its own funds to relocate a number of residents from their poorly maintained buildings.

Established in 1954, Glavmosstroy is engaged in civil engineering and is associated with the Glavstroy Holding, whose parent company is Deripaska's Basic Element.