Forte Tax & Law successfully defends a client against a multimillion-ruble lawsuit

The lawyers at Forte Tax & Law who specialize in dispute resolution have successfully represented a Russian IT group of companies in a lawsuit concerning the recovery of remuneration under an agency agreement.

The client entered into an agreement with a financial broker, under which the broker agreed to seek external bank financing for the entire group. The broker’s remuneration was determined as a percentage of the transaction value, which eventually exceeded RUB 1 billion. Potentially, the broker’s remuneration could have amounted to hundreds of millions of rubles.

The lawsuit was quite complex, and its outcome was difficult to predict. On the one hand, the agreement contained a list of banks, from which the client was interested to obtain financing. The payment of the broker’s remuneration was contingent on successfully closing a deal with one of these banks. On the other hand, the client had the right to negotiate directly with any of these banks, as this would not constitute a breach of the agreement. As a result, one of the banks on the agreed list provided financing to the client. The broker that was involved in the negotiations insisted on being paid remuneration, asserting that its efforts were instrumental in closing the deal.

The lawyers at Forte Tax & Law successfully demonstrated in court that the payment of the broker’s remuneration was contingent on the broker’s specific effective actions, which were directly meant to result in the execution of an agreement with the bank. The court was presented with persuasive evidence indicating that the client had obtained the financing through its own efforts, without the involvement of the broker. The court sided with Forte Tax & Law, dismissing the lawsuit and protecting the client against the counterparty’s multimillion-ruble claims, including the possibility of the bank increasing the amount of financing in the future.

One of the key features of the lawsuit was that as part of the defense strategy, the lawyers at Forte Tax & Law prepared and submitted a draft court decision to the court. This instrument, permissible by law, allows you to clearly demonstrate to the court the logic behind your legal position and the structure of your evidence, which is especially important in complex disputes. This was a key factor in securing a successful outcome in the lawsuit.

If you encounter a legal issue or anticipate litigation, lawyers at Forte Tax & Law stand prepared to develop a defense strategy and represent you in court. If you require any advice, please contact Julia Talagaeva or Robert Gurdyumov.

Forte Tax & Law is your reliable partner in resolving complex legal issues.