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Judgment of the Presidium of the Supreme Commercial Court of 31 January 2012 № 12506/11 in the case The entrepreneur Elena Samsonova vs The City of Tula et al.

Point of law: whether the recognition of the actions of a public authority as being unlawful by way of procedure of Chapter 24 of the Commercial Procedure Code is a necessary precondition of the recovery of losses caused by those actions pursuant to Arts 16 and 1069 of the Civil Code?

Alternative attitudes: 1) recognition of the actions of the public authority as unlawful following the rules of Chapter 24 of the Commercial Procedure Code is a necessary precondition of the recovery of losses caused by those actions; 2) the judicial defence of rights by way of compensation of harm caused by unlawful actions of public authorities (or officials) does not depend on the necessity to challenge those actions under Chapter 24.

Ratio decidendi: the Presidium held the second approach to be legally correct, having pointed out that it conforms to the interpretations which has been given by the Presidium in para 4 of the Information letter of 31 May 2011 № 145.

Practical consequences: the Judgment says that prior court decisions in analogous cases if inconsistent with this interpretation may be reversed in the procedure and within the limits envisaged by Art 311 of the Commercial Procedure Code.

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