- Russian Federation
- Arbitrazh Court of the Saha Republic (Yakutia)
SERVICE CONTRACT - BETWEEN TWO RUSSIAN PARTIES - UNIDROIT PRINCIPLES AS A MEANS FOR INTERPRETING APPLICABLE DOMESTIC LAW (RUSSIAN LAW)
GOODS STORED AT A RIVERPORT DESTROYED BY FIRE - FIRE NOT AMOUNTING TO FORCE MAJEURE AS IT COULD HAVE BEEN FORESEEN AND AVOIDED BY RIVER PORT AUTHORITY - REFERENCE TO APPLICABLE RUSSIAN LAW AND TO ARTICLE 7.1.7 OF THE UNIDROIT PRINCIPLES.
Claimant, a Russian company, and Respondent, a Russian river port, entered into a contract for the storage of goods. Claimant was the bailor, while Respondent was the bailee. The goods were damaged due to a fire at the river port.
Claimant brought an action before the court of first instance claiming damages. Respondent objected on the ground that the outbreak of the fire amounted to a case of force majeure, which exempted Respondent from liability for the non-performance of the contract.
The court decided in favor of Claimant and based its decision on Russian domestic law and on Art. 7.1.7 of the UNIDROIT Principles. According to the court the fire was caused by the welding jobs and could have been foreseen and avoided by Respondent and did therefore not amount to a case of force majeure.