Commentary by Mikhail Gusev on PRAVO.RU
The client entered into legal services agreement with a private lawyer to support the transfer of real estate for business needs. Disappointed with the quality of services provided, the client filed a lawsuit against the lawyer - demanded a refund for services not rendered, as well as a penalty and a consumer fine.
The Oktyabrsky District Court of Krasnoyarsk partially satisfied the claim, reducing the requested amounts: despite the lack of individual entrepreneur status, the defendant systematically provides legal services, which falls under paragraph 4 of Article 23 of the Civil Code and allows the application of consumer legislation. The appeal and cassation supported the position of the district court.
The Supreme Court did not agree with this, overturned the acts adopted in the case and sent the case to the court of first instance for a new trial with the following explanations:
- the law "On the Protection of Consumer Rights" applies only when services are purchased for personal, family, household or other needs not related to entrepreneurial activity;
- the systematic activity of a lawyer does not mean the automatic application of the law "On the Protection of Consumer Rights". The customer must prove that he used them for personal, not business needs.
According to Mikhail Gusev, Head of Dispute Resolution Practice at Infralex, in the context of the dispute in question, the Supreme Court clearly stated that one cannot be a consumer if one orders a service for business development. The determining factor is not the formal status of the parties, but the purpose of the contract. Since the services were ordered not for personal needs, but for commercial purposes, there were no grounds for applying the provisions of the Law on the Protection of Consumer Rights.