Advocates Bureau Yug Successfully Defended a Major Russian Plant in a dispute over the invalidity of transactions and losses of 1.4 billion rubles, which caused a corporate conflict

08.02.22

Advocates Bureau Yug Successfully Defended a Major Russian Plant in a dispute over the invalidity of transactions and losses of 1.4 billion rubles, which caused a corporate conflict

ABYs client, the major supplier of KAMAZ and Russian Railways, was involved in a court dispute on recovery of losses from his counterparty on transactions that one of the clients shareholders considered unprofitable and invalid, 8 years after their conclusion and execution.

The client was involved in the trial as a third party, but subsequently became a defendant. The clients shareholder estimated the losses of 1.4 billion rubles. However, within 2.5 years the shareholder failed to provide any convincing evidence that controversial transactions had caused negative consequences to the client. The shareholders claim created significant risks for the client, as the client would have to return raw materials (received under the transaction) to the counterparty. Taking into account the market prices, it would cost about 1.4 billion RUB, which might would call into question financial and economic state of the client and caused to cease his business.

The Commercial Court of the Bashkortostan Republic agreed with our argument and dismissed the shareholders claim. The motivation of the decision on our appeal claim was adjusted by the 18th Commercial Appeal Court. The Ural District Arbitration Court upheld the said decisions.

ABYs lawyer Ekaterina Fedenko represented interests of the client in trial.

represented interests of the client in trial.

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