A well-known capital development company entered into a long-time lease on a large land plot in the central district of Sochi with its municipality. However, local authorities arbitrarily made changes to a grand design and development and land-use standards, leading to changes of the land territorial zone.
Thus, while carrying out a sustainable development of the territory, the public-law entity changed the legal status of the land plot and its permitted use. Therefore, the land tenant was limited to use the land plot for purposes, agreed upon with the same public-law entity under the lease agreement.
ABY’s lawyers proved that the land plot had legal defect as it was legally impossible to use the property as intended and for the purposes, agreed upon by the parties of the lease agreement. Moreover, forensic expertise established market value of the land rent for the plot’s use in accordance with stated limits.
The Krasnodar Region Commercial Court satisfied the claims and reduced the initial land rent almost by 10 times.
ABY’s lawyers Alexey Demekhin and Ekaterina Fedenko represented the client in the court.Back