The Presidium of the the Supreme Commercial Court Upholds the Standing of KIAP’s Client in the Case Setting Precedent for the Russian Utilities Market

On April 5, 2012, the Presidium of the Supreme Commercial Court of the Russian Federation heard case А79-7518/2010 on the claim filed by OOO Novek Management Company for invalidation of an instruction by Rospotrebnadzor, under which instruction this agency imposed upon the plaintiff an obligation to cease the violation of the rights of the users of heating utility services. Korelskiy, Ischuk, Astafiev and Partners, Attorneys at Law represented in the proceedings an interested party, Communal Technologies, supplying energy to the plaintiff.

As Mr.Aleхander Borouhin, the head of the firm’s Energy and Utilities Practice, mentioned in his speech during the session of the Presidium, Communal Technologies, despite its procedural standing, was especially interested that the fair and lawful ruling would be adopted on the case since under the rulings of the courts of the instances of appeal and cassational appeal the liability for the violation of the rights of individual users of utility services had been wrongfully assigned to KIAP’s client. This litigation is one of many disputes between Communal Technologies and OOO Novek Management Company while the latter currently has indebtedness to the client in the amount exceeding 100 million roubles despite being able to effectively collect in full all amounts charged on the individual users.