MOSCOW, August 21 - RAPSI. The Moscow Commercial Court will reconsider on October 9 a complaint filed by multipurpose construction project Beryozka Cluster Home Community to collect $206 million from the Moscow government, the court told the Russian Legal Information Agency (RAPSI/rapsinews.com) Tuesday.
The claim stems from a multipurpose construction contract dated December 29, 2005.
Beryozka sought 6 billion rubles ($187.4 million) in lost profits. It also sought to collect over 301 million rubles ($9.4 million) in actual damages and to return another 303 million rubles ($9.5 million) that it invested under the contract, plus interest.
The Moscow Commercial Court terminated the disputed contract in February and ordered the Moscow Committee for Investment Projects Implementation to pay Beryozka the 303 million rubles ($9.5 million) that were paid upfront and 81.5 million rubles ($2.5 million) as interest, but refused to recover the remaining sum.
The Ninth Commercial Court of Appeals changed the lower court decision. It refused to collect 81.5 million rubles ($2.5 million) and the final amount subject to recovery dropped to 303 million rubles ($9.5 million). The court also upheld the investment contract termination. The remaining claims were dismissed.
The higher appeals court canceled the preceding judgments and remanded the case for review.
The Moscow government, its investment and development, and road-building and engineering construction departments acted as co-defendants in the case.
The Finance Department has also been involved as a third party.
The parties also disagreed on the contract type. The plaintiff held that it was a purchase and sales contract, while the defendants maintained that it was a special partnership agreement.
One of the departments said it deemed the contract null and void, as it was concluded in breach of the law. It said the department had no authority to contract a co-investor or to enter into such arrangements, although the department should not be blamed for failing to implement the agreement.