Our client, the largest in Eastern Europe dealer of a premium car manufacturer, was in conflict with an importer, who declared the termination of the dealership contract, citing its right to do so in accordance with contract terms. Termination of the contract resulted in huge financial losses and threatened client’s contracts with other premium car brands, due to the loss of reputation. The client approached us a month before the date of termination of the contract. We faced a difficult task of finding an unprecedented position to protect the dealer in a short timeframe, despite the lack of judicial practice on the matter. We also had to collect complex and extensive evidence proving the unjustified actions of the importer.
Our client not only saved their business and their reputation, but also contributed to the development of new level of service in the car marketplace. The case established an important precedent for the entire market, which had a positive impact on the development of Russian standards that follow generally accepted international practices, overseeing relationships between importers and dealers. It is worth noting that six months after the completion of this litigation, the Supreme Commercial Court of the Russian Federation issued a decree on “On the freedom of contract” which reflected the legal position that our team defended in court and that was unprecedented at the time of the hearing.
Despite the bias of local courts, our selected legal strategy has allowed the client to establish a strong negotiating position and to keep the investments they previously made. In addition, the lawsuits under the framework of this project became some of the few cases that have laid the foundation in the formation of law enforcement practice regarding so-called "lost earnings" payments, which arise when businesses offer goods and services that are subject to government tariffs.