The client of our company – budget-financed organization - by the results of trades concluded a treaty on designing of the laboratory building. According to the terms of a government contract works were divided into several stages. Each of the stages had a certain date of conclusion. The customer was entitled to abandon the contract in case of delay in any of the stages on 5 working days.

Having started the execution of the contract, the designer admitted a delay on both the first and the second stages. The customer unilaterally repudiated the contract. In 8 days after the decision the designer tried to deliver the draft, but the customer  refused to accept it as contractual relationship have been completed.

The contractor filed an action with the Court for reversal of a decision on the unilateral rejection of the contract as it was made in violation of the procurement law. In accordance with Part 14 of Article 95 of the Federal Law on the contract system designer believed that having passed the draft project within the statute-established ten-day period, cured the default and the decision of the customer would be canceled.
Managing Partner, "Gudkov, Korelskiy, Smolyarzh" Maxim Korelskiy and senior lawyer Vitalya Skalatskaya managed to convince the Court that the delay is
irremediable breach.
Arbitration Court of Arkhangelsk Region fully dismissed the claim of the designer. The Fourteenth Arbitration Court of Appeal agreed with the findings of the Court of First Instance and the arguments of our client. It and upheld the decision, and the appeal of the designer leaved without satisfaction.


Image source: proecting.ru