The court ruling on the canceled car show came into force

12.08.2020

The court ruling on the canceled car show came into force
Photo: © toine G on Unsplash

On August 6, 2020, the Ninth Arbitration Court of Appeal upheld the ruling of the Moscow Arbitration Court, obliging a large Russian Insurer to pay insurance indemnity in the amount of more than 70 million rubles under the insurance policy of the business risk in favor of the Insured (the Principal of KIAP, Attorneys at Law).

The dispute arose in connection with the untimely settlement by the Insurer of the claimed loss in connection with the cancellation of the car show based on the famous film franchise of the movie "Fast and the Furious". The show, which was organized by the Principal of KIAP, Attorneys at Law, on the territory of the Russian Federation did not take place due to the bankruptcy of the British counterparty, the distributor of this show. Losses due to bankruptcy of counterparties for the show were one of the risks insured under the business risk insurance contract. Since such losses are atypical for the practice of the Russian insurance market and are of an isolated nature, the parties to the insurance contract did not manage to resolve the issue of paying out the insurance indemnity out of court.

KIAP accompanied this loss from the very beginning of its settlement, and since the Insured did not receive the payment stipulated by the contract within the established time frame, the law firm was forced to file a relevant court complaint to the Arbitration Court. During the consideration of the case in the court of the first instance, the lawyers of KIAP, Attorneys at Law, formed and confirmed with evidence a legal position, which allowed the court to make sure that there was an insured event and the number of losses incurred by the Insured from its occurrence, which led to a decision to recover the amount of insurance compensation from the Insurer, and also penalties for violation of the terms of settlement of losses. The Ninth Arbitration Court of Appeal confirmed the legality and validity of this ruling, leaving it unchanged in full.

It should be reminded that this is one of the first cases in Russia to insure damages for such a large loss due to the cancellation of a cultural and entertainment event.

The Principal’s interests in this dispute were represented by Partner Dmitry Schnaydman.


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The practice is recommended by the Russian legal directories Pravo-300 and "Kommersant". Among legal support of disputes, main directions of the practice include legal consulting services in respect of a more wide range of issues related to insurance and reinsurance, tariffs and policies, legal examination of internal procedures, scoring and insurance products in the interests of insurers, professional associations of insurers, as well as insured persons, companies and state institutions. The direction is headed by partner Dmitry Shnaydman recommended by the international rating Best Lawyers. Dmitry is a lawyer with 18 years’ experience in insurance business. During the last 8 years he headed the area of business of Rosgosstrakh, major Russian insurance company, dealing with legal support for the largest and most significant disputes on the whole territory of the Russian Federation for all types of insurance (the aggregate annual sum of claims for the considered cases amounting to more than RUR 2 billion). He has significant experience of provision of the effective support for major judicial disputes (with the claim sum amounting up to USD 30 million), related to insurance contracts in the sphere of power engineering, agricultural insurance, maritime hull insurance, professional liability, as well as experience of legal proceedings with participation of foreign reinsurers.
   


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