Dmitry Uryakin has assessed for Novy Prospect the prospects of the land dispute initiated by City 78 Development Holding

One of the companies withing City 78 Development Holding is trying to recover 267m roubles from Ruchi Breeding Plant in court. The amount of the lawsuit consists of losses and profit lost by the developer due to the disruption of transactions for the sale of 40 hectares of land for the construction of a cottage settlement. In particular, after acquiring the property, the developer was forced for several years to participate in court disputes with state authorities that challenged the ownership and designation of the land parcels. In addition, after City 78 had paid for the contract, Ruchi Breeding Plant failed to remove encumbrances from the land. It led to the breakdown of transactions with buyers who demanded refunds as well as compensation payments.

“If the losses were triggered by the breeding plant’s behavior, then City 78 has grounds to compensate for its own losses,” Dmitry Uryakin, an Associate at Maxima Legal, explained to Novy Prospect online edition. According to the expert, the likelihood of recovery of damages and their amount will depend on whether Ruchi has violated the procedure of mortgage record redemption, which has been agreed, and whether the agreement between the parties contains conditions to eliminate or limit the liability of the a breeding plant. “Besides, it will be important to answer the question, whether the losses were caused exclusively by the inactivity of Ruchi or whether their occurrence was caused, among others, by the conduct of City 78,” concluded Dmitriy.

To read the full article (in Russian) please visit Novy Prospect website >>>