Court Dismissed Shipyard's Action against Design Bureau

17.08.2012 Court of Nizhny Novgorod rejected action of JSC Admiralteyskie Verfi shipyard (affiliate of United Shipbuilding Corporation) for dissolution of the contract with Lazurit Design Bureau on development of deep-sea diving system and for recovery of RUR 222.68 mln, reports informational portal IF-Region referring to website of the Superior Arbitrage Court.

The shipyard wanted to recover RUR 187.53 mln advance, RUR 12.97 mln fine for delay in working schedule, and RUR 11.09 mln interests on peculating under the contract tied with Lazurit on May 18, 2006.

That agreement provided designing of a deep-sea diving system for a Project 21300 rescue ship under the contract signed by Admiralteyskie Verfi and Russian Defense ministry on Oct 24, 2005. According to materials of the case, the parties initially agreed upon the cost of works as RUR 672.98 mln, but in Nov 2010 the sum was increased up to RUR 928.19 mln.

As long as the Lazurit bureau exceeded deadlines of the diving system's designing, the agreement was dissolved on Dec 21, 2011.

As is said in the case materials, "the court comes to conclusion that the reason for agreement dissolution was a decision of defense ministry to discharge the state defense contract". That fact was found reasonable to dismiss the shipyard's action for denouncement of the arguable agreement with Lazurit.

Having analyzed Lazurit's actual expenditure in the project implementation and financing by the shipyard, the court also rejected appeal of Admiralteyskie Verfi for recovery of advance, fine, and interests.

According to the court, value of work done was RUR 547.75 mln, but only RUR 371.39 mln were paid.

"Actual expenses of the defendant are proved by documents; the claimant has no reasons for nonacceptance of the listed expenditures. Besides, it should be noted that actual expenses exceed the advance transferred by the claimant. Works provided by the contract were completed, which is proved by acceptance certificates signed by the contractor, associate contractors, and military acceptance office. In such circumstances there are no grounds to satisfy demands for recovery of RUR 187.53 mln advance", says the adjudgement.

In July 2012, St. Petersburg Arbitration Court sustained a claim of Lazurit Design Bureau for recovery of RUR 176.36 mln from JSC Admiralteyskie Verfi under the same contract. According to the court, the shipyard should have paid for works upon their termination through the client's fault "at actual costs with due regard to level of profitability prescribed in the price for such kind of work".

Late in Feb 2012, a high-ranking official of Russian Navy Main HQ told RIA Novosti that Russian defense ministry and United Shipbuilding Corporation had decided to waive the services of Lazurit Design Bureau on development of deep-sea diving system for rescue ship Igor Belousov built by Admiralteyskie Verfi. It was also decided to complete construction of the ship in 2014 without increase of overall cost under the state contract.

Project 21300 rescue ship Igor Belousov was laid down in 2005. Construction moved on with considerable time delays. In many ways, the reason for that was unacceptable diving system designed by the Lazurit bureau. Designers suggested postponing of delivery date at least for 2015, increase financing by RUR 1.3 mln and enlist services of an Italian company.

According to a Russian Navy spokesman, it is decided to equip the ship built by Admiralteyskie Verfi shipyard with up-to-date batch-produced diving system DIVEX.