Sergei Bakeshin told Novy Prospect about the application of the canon law in a commercial dispute

“Dostupnoe Zhiliyo” LLC (“Affordable Housing” LLC) concluded an agreement with the Roman Catholic Archdiocese, under which the organisation undertook to obtain the return of a church complex in Moscow to the church believers. Under the terms of the agreement, the property was to be sold, and the company was to be paid half the value of the property. However, the archdiocese violated the terms of the agreement by refusing to sell the complex, after which “Dostupnoe Zhiliyo” LLC appealed to the court. The Moscow Commercial Court recognised the plaintiff’s claims as justified, ordering the church to fulfil its obligations. In its turn, the appeal instance declared the contract null and void, as it was concluded by a religious organisation without the written consent of the authorised governing body, which is the Holy Throne (Vatican). Citing the norms of canon law, the court overturned the lower instance’s decision, rejecting all the claims of “Dostupnoe Zhiliyo” LLC.

Counsel, Head of Dispute Resolution and Insolvency Practice at Maxima Legal Sergei Bakeshin agreed with the conclusions of the appeal. “The court concluded that the activities of the archdiocese are governed by the norms of the law of a foreign state (the Vatican), the defendant is part of the Catholic Church, which is subject to the norms of canon law,” the expert explained to Novy Prospect.

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