- Russian Federation
- Arbitrazh court of Kostroma region
ADMINISTRATIVE CONTRACTS - SERVICE CONTRACT - BETWEEN RUSSIAN INDIVIDUAL AND RUSSIAN MUNICIPALITY - REFERENCE TO THE UNIDROIT PRINCIPLES TO INTERPRET OR SUPPLEMENT APPLICABLE DOMESTIC LAW (RUSSIAN LAW)
DAMAGES - AMOUNT CANNOT BE ESTABLISHED WITH A SUFFICIENT DEGREE OF CERTAINTY - EQUITABLE QUANTIFICATION OF DAMAGES - REFERENCE TO ARTICLE 7.4.3(3) OF UNIDROIT PRINCIPLES
Under a contract for household services between an individual Russian entrepreneur and a Russian municipality, a dispute arose concerning the amount of damages to be paid by the municipality for an alleged breach. Since it was not possible to establish with a sufficient degree of certainty the amount of damages, the Court made an equitable quantification of the harm sustained. In so doing, the Court applied not only the applicable domestic law (Russian law) but also referred to Art. 7.4.3(3) of the UNIDROIT Principles, which states that "[w]here the amount of damages cannot be established with a sufficient degree of certainty, the assessment is at the discretion of the court."