Debt recovery

After the decision was overturned in cassation, recovered RUB 2.6 million from the debtor

Initially, the dispute began with a claim for about RUB 813 thousand of principal debt. After the court rulings were overturned in cassation, the case returned for a new hearing. The claims were increased to RUB 2.6 million, the court satisfied them, and the final result was upheld in the higher courts.

Situation

Montazhnye Tekhnologii LLC filed claims with the Commercial Court of the Krasnoyarsk Territory (Арбитражный суд Красноярского края) against Severnybyt LLC.

Initially, the client demanded recovery of RUB 813,358.33 of debt under the contract and RUB 115,173.79 of interest for the use of other people’s funds.

In the first round of litigation, the Commercial Court of the Krasnoyarsk Territory recovered RUB 813,358.33 of debt, RUB 115,045.46 of interest and RUB 21,568 of court fee expenses.

The appellate instance left the decision unchanged.

However, the dispute did not end there.

The cassation court overturned the rulings and returned the case for a new hearing

The Commercial Court of the East Siberian District (Арбитражный суд Восточно-Сибирского округа) overturned the first-instance decision and the appellate ruling and sent the case for a new hearing.

The cassation instance indicated that, given the disagreements between the parties over the scope of services rendered and the contradictions in the evidence, the lower courts had not taken all necessary measures for a comprehensive and complete examination of the case.

After that, the dispute effectively had to be conducted anew, taking into account the conclusions of the cassation instance.

At the new hearing, the claims were increased to RUB 2.6 million

After the case returned to the Commercial Court of the Krasnoyarsk Territory, the work on the dispute continued.

During the new hearing, the plaintiff’s claims were clarified.

Montazhnye Tekhnologii LLC claimed recovery of RUB 2,607,022.47 of unjust enrichment.

The court accepted the clarification of the claims and continued considering the dispute based on the new amount claimed.

Following the new hearing, the claims were satisfied.

Key moment of the case

Overturning a decision in cassation does not mean the dispute is lost

Returning a case for a new hearing means that the court process effectively begins again, taking into account the instructions of the higher court.

In such a situation, it is not enough to repeat the previous position.

It is necessary to take into account the reasons for overturning the rulings, reassess the evidence, eliminate the contradictions identified by the court and, if necessary, adjust the claims.

In this case, after the initial rulings were overturned, the client’s claims were substantially increased — from the initial RUB 813 thousand of principal debt to RUB 2.6 million.

At the new hearing, the court satisfied the plaintiff’s claims.

The final result was upheld in the higher courts

After the new hearing, the dispute again passed through the higher court instances.

By a ruling of the Third Commercial Court of Appeal (Третий арбитражный апелляционный суд), the decision following the new hearing was left unchanged.

The defendant continued to appeal.

On 28 April 2021, the Commercial Court of the East Siberian District also left the decision of the Commercial Court of the Krasnoyarsk Territory and the appellate ruling unchanged.

The defendant’s cassation appeal was dismissed.

Additionally recovered RUB 235,724 of court costs

After the main dispute was completed, the client filed a separate application for reimbursement of the expenses incurred during the case.

This included the expenses for the legal assistance of Konsultant Law Firm and travel expenses related to participation in the court hearings of the appellate and cassation instances.

The court separately examined the volume of the representatives’ work, the complexity of the case, the procedural documents and participation in the court hearings.

The court recognized RUB 135,000 of expenses for the legal services of Konsultant Law Firm as reasonable and justified in full.

The court additionally recognized part of the client’s travel expenses as justified.

In total, by a separate ruling, RUB 235,724 of court costs was recovered from Severnybyt LLC in favor of Montazhnye Tekhnologii LLC:

  • RUB 235,724 of court costs.

Result

2.6M RUB

Result

After the initial rulings were overturned, the case was re-examined.

At the new hearing, the claims of Montazhnye Tekhnologii LLC were increased to RUB 2,607,022.47.

The court satisfied the claims.

The final ruling was upheld in the appellate and cassation instances.

After the main proceedings were completed, an additional RUB 235,724 of court costs was recovered from the defendant, including RUB 135,000 of expenses for the legal services of Konsultant Law Firm, which the court recognized as reasonable and justified in full.

Most importantly, the court decision was actually enforced: the client received the awarded funds.

Our role

Konsultant Law Firm represented the interests of Montazhnye Tekhnologii LLC in the dispute with Severnybyt LLC.

Nikolay Nemkov participated in the court proceedings as the plaintiff’s representative.

The work on the case included analyzing the materials and evidence, forming the legal position, preparing procedural documents, representing the client’s interests in the court instances and the subsequent recovery of court costs.

Of particular importance was the work after the initial rulings were overturned: the case required a new hearing and an adjustment of the claims in light of the further examination of the circumstances of the dispute.

Court

Commercial Court of the Krasnoyarsk Territory

Case

No. A33-35006/2017

Plaintiff

Montazhnye Tekhnologii LLC

Defendant

Severnybyt LLC

Initial decision

25 September 2018

Overturning of rulings by cassation

16 April 2019

Decision after the new hearing

18 September 2020

Final cassation

28 April 2021

Ruling on court costs

4 October 2021

Category

Debt recovery / commercial dispute

Plaintiff’s representative

Nikolay Nemkov

Enforcement

The client received the awarded funds

Practice Areas

Practices Related to This Case

Nikolay Nemkov

Managing Partner, Konsultant Law Firm

Nikolay Nemkov

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