Data
- Date:
- 01-11-2021
- Country:
- Russian Federation
- Number:
- A05AP-6104/2021
- Court:
- Fifth Arbitrazh Appellate Court
- Parties:
- Dalagroliga v Ussuriski melnitsy
Keywords
LONG-TERM CONTRACTS – SERVICE CONTRACT - BETWEEN TWO RUSSIAN COMPANIES – REFERENCE TO UNIDROIT PRINCIPLES TO INTERPRET NATIONAL APPLICABLE LAW (RUSSIAN LAW)
NOTION OF FORCE MAJEURE - REFERENCE TO UNIDROIT PRINCIPLES (ART. 7.1.7)
Abstract
The claimant (the depositor) sought damages from the respondent (the warehouse operator) over lost grain under a storage and handling contract. The respondent argued technical issues with a conveyor and questioned the calculation of losses, also claiming force majeure.
The court emphasized that under Russian law, a warehouse is liable for loss of deposited goods unless it proves force majeure. Technical failure of the conveyor did not constitute an extraordinary, unavoidable event as defined by Russian law or UNIDROIT Principles of International Commercial Contracts (1994), Article 7.1.7, which refer to events “beyond the control of the party” that could not reasonably have been anticipated or avoided. In this regard, such circumstances are understood as extraordinary and unavoidable phenomena or events, the impact of which comes from external sources and does not depend on subjective factors: floods, natural disasters, earthquakes, hurricanes, avalanches, other natural catastrophes, as well as military actions and epidemics.
Liability and causation were established, and damages were assessed based on market value at the time of loss, consistent with the principle of full compensation. Prepayments not returned by the warehouse were also recovered under the law of unjust enrichment.
Abstract in English kindly provided by Roman Zykov.
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