15.06.2022 | News
BGP Litigation Defends a Client in a Dispute against a Major Construction Company and Helps It Recover RUB 147 Million

BGP Litigation has represented a contractor in a dispute against one of the largest construction companies over failure to meet the deadline for completion of works under the contract. Believing that the fault for the breach of the term was with the contractor, the customer claimed a penalty of RUB 252 million, having received RUB 145 million under bank guarantees and proceeding to seek recovery of the remaining RUB 55 million from the contractor in court.

The BGP Litigation lawyers, however, managed to persuade the court that the delay in the performance of work under the contract was due to the prolonged delay by the customer (its delay in approving design solutions) and force majeure (anti-Covid measures in Russia and foreign states). As a result, the court ordered the recovery of over RUB 145 million from the customer that the latter had unjustly received under the guarantees and dismissed the customer’s counterclaim for the recovery of a penalty from the contractor.