Advance recovered and contract terminated over a defective advertising structure

The task

Mr L. entered into a contract with a sole proprietor for the manufacture and installation of an advertising structure and paid an advance of more than RUB 50,000. Once the structure had been made, substantial defects came to light. The contractor promised to remedy them but then refused both to do so and to return the advance.

What we did

• Recorded the defects and gathered evidence that the contractor had refused to remedy them: correspondence, certificates and payment documents.
• Sent the contractor a formal demand to remedy the defects or return the advance and allowed the contractual response period to run.
• Drafted and filed a claim with the Arbitrazh Court of the City of Moscow for termination of the contract and recovery of the unjust enrichment with interest.
• Maintained the position on appeal and, once the judgment took effect, saw the matter through to the client actually receiving the money.

The result

The Arbitrazh Court of the City of Moscow granted the claim: the contract was terminated and Mr L. recovered the unjust enrichment together with the interest accrued on it. The ruling was upheld on appeal. Case No. А40-261652/2021.

This description reflects the result in a particular matter on particular facts. A result in one case neither guarantees nor implies a similar result in another.