Ost Legal successfully represents the interests of a German contractor in a major construction dispute

Ost Legal successfully represented the interests of a German contractor in a construction dispute over the recovery of a penalty and the cost of completed work. In the dispute, the customer had filed a claim seeking the recovery of a penalty of more than RUB 1 bln in connection with a delay in construction completion. For its part, the contractor was able to demonstrate that most of the delays had been caused by the customer’s own fault. In addition, the contractor had filed a counterclaim seeking recovery of the cost – running into the tens of millions of euros – of work that it had completed but not yet been paid for. Based on the outcome of the dispute, the amount of the penalty was reduced to less than RUB 30 mln, and the contractor’s claims were satisfied in full.