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ART DE LEX fought off the new attack to the “Far East development Corporation”

Due to a thorough analysis of the case, the lawyers of ART DE LEX managed to defend the interests of JSC “Far East development Corporation” (FEDC) again, not allowing the unfair contractor to waste budget funds.

The 9th Arbitration Court of Appeal of the City Moscow dismissed the appeal of the project organization. The contractor insisted on paying for a certain amount of the work, but could not persuasively confirm either the quality or even the fact of performance of the claimed part of the work.

The case in a court was represented by the head of International Arbitration and Dispute Resolution practice of ART DE LEX, advocate Artur Zurabyan andadvocate Anastasia Vasilenko.

Artur Zurabyan said that despite, mildly speaking, controversial demands, such disputes arise quite often: some contractors seriously believe that if the amount of the claims of an unfair counterparty is relatively small (several million rubles), the position is emotional – offended a small contractor! - even a large state corporation will not be able to properly protect its interests by writing off the disputed amount in the operating costs.

As Anastasia Vasilenko clarified, "The responsible position of the FEDC is that any inappropriate or inefficient spending of funds eventually prevents the implementation of significant social-economic projects. In this case - the development of infrastructure in one of the regions of the Russian Far East".

Artur Zurabyan summarized, “Besides that, in such disputes essential is the principle: regardless of the amount of claims – an unfair counterparty should receive a fitting rebuff and should be punished (imposed) by a ruble. Otherwise, taking into account the capacity of the portfolio of contracts of the state company, there may be a lot of those wishing to profit from the budget".

REFERENCE

JSC "Far East Development Corporation" is a management company set up by the Government of the Russian Federation to manage the territories of outstanding social and economic development in the Far East. With the adoption of the Federal Law "On the Free Port of Vladivostok", Far Eastern Federal District (FEFD) became responsible for the implementation and development of a special regime for business activities on the territory of the free port of Vladivostok. In the regions of the FEFD, representatives of the FEDC have been formed, their goal is to create comfortable conditions for business, create new jobs and increase the population in the Russian Far East.