The Federal Court of Arbitration of the Moscow circuit reversed the decision of the Ninth Arbitration Court of Appeals and sustained the Moscow City Court’s award under which the claim of the Regional Public Organization «Center for Economic and Political

RPO «EPICENTRE» moved the court of arbitration with the claim against OJSC «Centerstroyservice» for annulment of contractor’s agreement as a mock agreement.

Advocates and lawyers of the Law firm «YUST» represented RPO «EPICENTRE» in courts of all three instances and succeeded in upholding the claim.

When upholding the claim, the Arbitration court of Moscow city pointed out (i) that the contractor’s agreement parties’ actions connected with conclusion and execution of the agreement had not been intended to receive the result stipulated by the agreement, (ii) the absence of contractual works actually fulfilled by the respondent, and, as consequence, (iii) the mocking of the contractor’s agreement.

The Ninth Arbitration Court of Appeals having considered the case regarding the OJSC «Centerstroyservice» claim of appeal reversed the award of the Court of Arbitration of the Moscow circuit.

However, the Federal Court of Arbitration of the Moscow circuit by its ruling dated 18.02.2009, reversed the decision of the arbitration court of appeals and confirmed the legality of the award delivered by the court of first instance, having specified that the conclusions in the court of appeals’ decision mismatch the case facts and are not based on applicable law.