Recovery of damages in public and corporate procurement

Recovery of damages in public and corporate procurement

One of the important areas of practice of “Public and corporate procurement” of BRACE Law Firm lawyers is the provision of legal services on recovery of damages in public and corporate procurement.

Lawyers of the BRACE Law Firm specialize in public and corporate procurements, and also have many years of experience in the protection of the rights of both procurement participants and state and corporate customers in litigation on recovery of damages in public and corporate procurement.

Recovery of damages in public and corporate procurement

Damages according to Russian law are understood as expenses that a person whose right has been violated has made or should be made to restore the violated right, or lost profits that this person would have received under ordinary conditions of civil circulation.

The main legal acts regulating the procedure for recovering losses in the framework of state and corporate procurements are the Federal Law of April 5, 2013 N 44- FZ “On the contract system in the field of procurement of goods, work, services to meet state and municipal needs” and the Civil Code of the Russian Federation. Federal Law of July 18, 2011, N 223-FZ “On Procurement of Goods, Work, Services by Certain Types of Legal Entities” does not regulate the procedure for recovering losses in the framework of corporate purchases and the conditions for recovering losses during such purchases are regulated by general norms of civil law.

Losses can be recovered both from customers and from procurement participants in case of violation of procurement legislation by them, resulting in material damage and/or resulting in loss of income (lost profit).

For example, the losses recoverable from customers include income that could have been received by the supplier if it was recognized as the winner based on the results of the procurement if another procurement participant was illegally recognized as the winner. Also, the customer may be required to reimburse the costs of the procurement participant for preparation for participation in the procurement if the application of such a participant was illegally rejected by the customer.

In addition, according to the general rule of the Russian law, damages can be recovered from operators of electronic platforms in favor of persons to whom they have been caused as a result of their unlawful actions (including in connection with the disclosure of information obtained during electronic procurement).

Losses may also be recovered from procurement participants by the customer in connection with their evasion from the conclusion of contracts, or in connection with the failure to fulfill already concluded contracts.

Procedural aspects of recovery of damages in public and corporate procurement

Before applying to the court for damages, a claim must be submitted pre-trial claim for damages.

In case of disagreement of the addressee of the claim with its arguments, or non-receipt within the reasonable time period indicated in the claim of an answer to it, recovery of damages will be carried out by appeal to the arbitration court.

Disputes regarding recovery of damages are notable for the difficulty of collecting evidence. This is especially true for evidence of lost profits. When forming a proof strategy, it is necessary first of all to provide evidence of damages (in the form of real damage or lost profit), the presence of unlawful actions of the defendant, the presence of a causal relationship between these illegal actions and the damages incurred to be recovered. A separate controversial issue when considering this category of cases is the validity of the number of damages, the assessment of which is influenced by many factors.

In this regard, it is especially important to provide sound legal support in recovering losses as part of public and corporate procurements.

Legal services

  1. Legal analysis of documents and other evidence submitted by a client in a dispute on recovery of damages in public and corporate procurement
  2. Consultation of lawyers and lawyers of BRACE Law Firm regarding the prospects of judicial and / or pre-trial settlement of a dispute on recovery of damages in public and corporate procurement
  3. Legal support of the claim procedure for the settlement of a claim for damages
  4. Development of the client’s defense strategy and tactics in court for disputes related to the recovery of losses under 44- FZ and 223- FZ
  5. Pre-trial preparation, including the formation of evidence
  6. Preparation and filing of a statement of claim (application) and other procedural documents in a judicial dispute on the recovery of losses
  7. Representation of interests, case management in court by BRACE lawyers and completion of all necessary procedural actions
  8. Coordination of several parallel trials (if necessary)
  9. Preparation and support of the conclusion of amicable agreements concluded at various stages of the trial
  10. The appeal of judicial acts in the courts of appeal, cassation and supervisory review
  11. Support of enforcement proceedings
  12. Other legal assistance according to Russian law

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Preliminary analysis and
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Conclusion of legal services agreement
Project work
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We provide the result and prepared documents

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