MOSCOW, February 22 (RAPSI) – Allianz insurance company has filed an appeal with the Russian Supreme Court against a lower court’s ruling ordering it to pay 751.5 million rubles ($11.4 million) in compensation to Samsung Electronics Rus Company, court documents read on Wednesday.

On September 1, 2016, the Ninth Commercial Court of Appeals collected from the insurer 697.1 million rubles ($10.6 million) of insurance compensation and interest amounted to 54.4 million rubles ($826,000).

Thus, the court reversed the Moscow Commercial Court’s ruling to dismiss a lawsuit lodged by Samsung. While also the court dismissed a counterclaim by Allianz seeking annulment of provisions of the contract concluded between parties in 2013.

According to court records, the subject matter of insurance is property interests of Samsung connected with default of payment by the company’s counterparties of debt for goods delivered to them on deferred payment terms. The agreement has been concluded in respect of eight plaintiff’s contract partners. One of the partners, Trial-Trade company didn’t make any payments for appropriate amount of time, constituting the insurance event. The insurance event is a long-term payment default by the plaintiff’s counterparty defined in the contract.

On December 1, 2014, Trial-Trade stopped paying its bills. A court ruled to recover debt from the company prompting Samsung Electronics Rus to ask Allianz to pay insurance. In August 2014, Samsung Electronics Rus found out that Trial-Trade received unwarranted payments and in August 2015 the defendant refused to pay insurance.

The Moscow Commercial Court turned down Samsung’s lawsuit claiming that the plaintiff had hidden Trial-Trade’s misconduct. However, this ruling was later overruled by the Ninth Commercial Court of Appeals.