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On September 11, 2014, the VEGAS LEX law firm won a case for one of its clients – a major developer – in a dispute over a general contract to construct a luxury residential building in Moscow’s Central Administrative Area.

In January 2014, a Turkish general contractor filed a lawsuit against VEGAS LEX’s client (the developer of the project) to collect on over RUR 66 mln ($1.7 mln) debt arising from the construction contract.

The developer, in turn, filed a counter-claim against the general contractor, to reduce the contract amount by RUR 67 mln due to the substandard quality of work.

In February 2014, the VEGAS LEX team proved the developer’s case and the Moscow City Commercial Court approved the demand to reduce the contract amount. It is worth noting that the contract stipulated a fixed price and allowed improvement of the work quality as legal remedy. The general contractor did not ask for a court-ordered expert examination, so the developer ordered it independently from an expert organization. The court, however, accepted the results.

The general contractor appealed the ruling in an appeals court and won the appeal; however, LEGAS LEX lawyers then defended the client’s interests in the court of cassation, and won the case there, thus ending a highly complicated dispute.

The team that won the case for the client was led by Managing Partner Alexander Sitnikov and included Partner and head of the Real Estate, Land & Construction Practice Igor Chumachenko and Senior Associate of the same practice.

For more information on the project, please contact Igor Chumachenko directly at chumachenko@vegaslex.ru.

This was yet another victory won by VEGAS LEX and its Real Estate, Land & Construction Practice, which resolved a highly complicated dispute in the sphere of construction contracts and investment.

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For more information on VEGAS LEX’s services related to real estate, construction and land, click here.