MIKHAIL GUSEV COMMENTARY IN LEGAL DIGEST AT PRAVO.RU
Is it obligatory for the customer to pay for actually completed and accepted work in the situation of сontractor’s documents and acceptance certificate absence?
This question apperaed in the case No. A40-204702/2021: the contractor company fulfilled its obligations under the construction contract, but the customer refused to pay for part of the work due to the absence of acceptance certificate and сontractor’s documents.
The court of first instance partially supported the position of the contractor, but the appeal and cassation court overturned the decision of the first instance and completely rejected the claim: they say, without documentation, the customer is not obliged to pay even for actually completed and accepted work.
The contractor appealed the judicial acts to the Supreme Court of the Russian Federation, insisting on a different approach: the result was accepted and the absence of сontractor’s documents does not exempt the customer from payment.
The Supreme Court is to put the final point in this dispute on August 5th. The Economic Collegium of the Supreme Court of the Russian Federation will determine the significance of acceptance certificate and сontractor’s documents when deciding the issue of the contractor's right to payment.
Head of Dispute Resolution Practice at Infralex, attorney Mikhail Gusev, commenting on the dispute, emphasizes that the transfer of the dispute to the Economic Collegium of the Supreme Court may mean that the Supreme Court intends to correct the mistakes of the lower courts, which were guided by a formal approach.
“If the Economic Collegium supports the applicant’s complaint, the parties to similar contracts will have the opportunity to achieve a positive result in the event of significant penalties being unjustifiably collected from them,” the attorney explained.