Expertise/Litigation

Service

Recovery of Damages

Where a breach of contract, damage to property or unlawful acts of public authorities have resulted in expenses or loss of income, the court decides who is to compensate them and to what extent.

We are most often instructed by:

  • Parties to a contract breached by the counterparty
  • Owners of property that has been damaged
  • Businesses claiming indemnity for losses
  • Companies bringing claims against the public treasury
  • Defendants in claims for damages

The information on this website is provided for information purposes only and does not constitute a public offer.

What the Service Includes

Timing and Fees
–timing on request
from ₽fee on request

Timing and fees are indicative and are confirmed when the engagement is agreed.

01 / Overview
Composition and amount of losses

Losses comprise actual damage and lost profit. Lost income is calculated taking into account the reasonable expenses that would have been incurred to earn it.

A court may not refuse to award compensation for losses caused by non-performance of an obligation solely on the ground that their amount cannot be established with a reasonable degree of certainty.

02 / Categories
Categories of cases
  • Breach of contractNon-performance or improper performance of supply, services, lease and other contracts: the costs of remedying the consequences and lost income.
  • Termination of a contract because of breachThe difference between the price under the terminated contract and the price of a replacement transaction or the current price, as well as other losses.
  • Damage to propertyClaims for compensation for harm caused to a company's property outside contractual relations.
  • Indemnity for lossesClaims under agreements between businesses providing for indemnity against property losses that arise on the occurrence of specified circumstances and are unrelated to a breach of obligation.
  • Claims against the public treasuryCompensation for harm caused by unlawful acts or omissions of state authorities, local self-government bodies or their officials.
03 / Outcome
Service Outcome
  • Opinion on prospectsA written position on the dispute with a calculation of the losses, possible courses of action and an estimate of costs.
  • Settlement materialsA demand to the party in breach and a draft agreement on the procedure for compensation.
  • Procedural documentsA statement of claim or a response, and the calculation and materials supporting the amount of the claims.
  • Attendance at hearingsRepresentation at court hearings.

The outcome of the service is the work performed within the scope agreed with the client.

04 / Preparation
What the position is built on
  1. Materials

    The position is built on the documents and the circumstances of the case; the following points are relevant.

    • ContractThe contract with annexes and supplementary agreements.
    • BreachReports, notices and correspondence recording the breach.
    • ExpensesPayment documents, invoices and cost estimates for remedying the consequences.
    • Lost incomeContracts with third parties, calculations and price information.
    • Measures takenDocuments on steps taken to mitigate losses.
    • Court caseThe statement of claim and the court's procedural rulings, if the dispute is already being heard.
  2. Assessment

    On the basis of the materials, the strengths and weaknesses of the position, the risks and the possible courses of action are identified.

  3. Plan

    For the chosen option, a plan is drawn up: the sequence of steps, timing and scope of work.

05 / Projects
Selected Projects
01 / 05

Appeals against court rulings

Dispute over a director's personal liability: rulings set aside by the Supreme Court of the Russian Federation

Challenge

The lower courts granted the claims of the insolvency administrator and the creditors to hold the director of a bankrupt company personally liable for its debts.

What was done

The case was taken to the Supreme Court. The good faith of each management decision was proved, and the Supreme Court set aside the rulings of the lower courts.

Challenging Transactions

Invalidation of a chain of transactions used to divert a debtor's assets

Challenge

Shortly before its insolvency, the debtor diverted its assets through a chain of formally independent transactions, each of which looked like an ordinary business operation.

What was done

The full chain was reconstructed, and the interconnection of the transactions and the invalidity of each link were proved. The assets were returned to the bankruptcy estate in full.

Recovery of Damages

Full recovery of damages from a former general director

Challenge

The former director caused losses to the company, expecting that it would not be possible to gather evidence: numerous transactions, a branching structure and blurred chains of cause and effect.

What was done

A systematic analysis was carried out: the chronology of decisions was reconstructed, the link between the transactions and the damage was identified, and bad faith was proved. The damages were recovered in full; the court granted the claims without any reduction.

Defence against challenges

Protecting the client's ownership against challenges to transactions in a bankruptcy case

Challenge

There were attempts, by challenging transactions, to bring the client's property – acquired, paid for and in commercial use – into the bankruptcy estate of an insolvent counterparty.

What was done

The legal position was built on the independent nature of the client's ownership. The court dismissed all the claims challenging the transactions, and the assets were retained in full without concessions or settlement agreements.

Challenging resolutions

Challenge to general meeting resolutions that blocked the distribution of profits

Challenge

The majority participant systematically blocked the distribution of profits by voting at the general meeting. The company was generating income, but the minority participant did not receive its share of the profits.

What was done

The general meeting resolutions were challenged. A mechanism compelling the distribution of profits was implemented through the courts.

06 / Questions
Frequently Asked Questions

The contractual terms limiting liability and the circumstances of the breach are examined. An agreement concluded in advance excluding or limiting liability for an intentional breach of obligation is void: it is assessed what evidence establishes the nature of the breach.

The claimant's calculation and the evidence of breach, amount and causation are examined. It is checked whether the losses arose from another cause and what reasonable measures the claimant could have taken to mitigate them.

A response and, where there are grounds, a motion for an expert examination are prepared.

The price under the terminated contract is compared with the price under a similar replacement contract or, if there is none, with the current price of comparable goods, work or services. Recovery of the price difference does not release the party in breach from compensating other losses.

Information on the income received by the other party as a result of the breach is examined. In this case, lost profit may be recovered in an amount not less than that income.

An hourly rate, a fixed fee or a combined model is used; in some cases part of the fee depends on the outcome achieved. The fee is determined by the time actually spent, the complexity of the matter and the overall timeframe of the project, and is agreed before work begins.

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