- Russian Federation
- Federal Arbitrazh Court of the Volgo-Vyatsky District
LONG-TERM CONTRACTS - STORAGE SERVICE CONTRACT - BETWEEN TWO RUSSIAN COMPANIES - REFERENCE TO UNIDROIT PRINCIPLES TO CONFIRM THE SOLUTION PROVIDED BY APPLICABLE DOMESTIC LAW (RUSSIAN LAW).
NOTION OF FORCE MAJEURE - REFERENCE TO ARTICLE 401(3) OF THE RUSSIAN CIVIL CODE AND TO ARTICLE 7.1.7 OF THE UNIDROIT PRINCIPLES
Two Russian companies entered into a contract for the storage of goods. When a fire broke out in the warehouse destroying the goods, the warehouse keeper invoked force majeure to exclude its liability for the loss caused to the customer.
The contract was governed by the law of the Russian Federation.
The court found that the fire could not be considered a case of force majeure, since it had been caused by the failure of the warehouse keeper to meet certain safety requirements imposed by the law and therefore the fire was neither an inevitable event nor the exclusive cause of the loss of the goods. In support of its decision the Court referred to both Article 401(3) of the Russian Civil Code and Article 7.1.7 of the UNIDROIT Principles.