Muranov, Chernyakov & Partners goes to the Supreme Court

The panel of judges of the Supreme Arbitrazhniy Court of Russia asked the Presidium to review the case of JSC Metallurgical Plant Electrostal v State Departmental Security Service of Russian Railways, JSC Russian Railways, et al.

The plaintiff contracted a rail delivery under guard of nickel worth more than $2.5 million. When the wagons were opened at the destination, instead of the metal there were concrete blocks. The examination revealed violations of the locking devices.

The factory applied to the Moscow Arbitrazhniy Court, introducing a lawsuit to recover the cost of lost cargo. Courts of the first instance and appeal satisfied the demand and recovered the cost of nickel from the security company.

On cassation, however, the decision was overruled. The Court of Cassation and, then, the lower courts ruled that all the participants had performed their obligations properly. The supplier had properly shipped the nickel, the carrier had properly delivered it, and the security company had properly guarded it. Yet, the cargo had disappeared

The judges of the Supreme Arbitrazhniy Court noted that the evidence pointed to an inadequate performance by the defendants of their obligations. They also pointed out that the courts had wrongly assumed that the factory had to prove the guilt of the defendants, while the fault was presumed and it was up to the defendants to prove the absence of fault.

August 1o, 2010