MBF Development OOO

Core of the Case

The client requested to prepare a legal opinion (formed the basis of the legal position), which was presented by him in litigation.
The administration of the municipal entity of Gelendzhik filed a claim for the demolition of the client’s apartment-hotel in the resort area (composed of 5 blocks of buildings – registered facilities under construction).
Our client purchased facilities to complete the construction. Immediately after the transaction, the regional administration demanded the demolition of the facility due to the fact that the area, where it is located, is considered a protected ecological zone.
The administration of the municipal entity of Gelendzhik filed a claim with the Gelendzhik City Court of the Krasnodar Territory against the defendant for the demolition of five facilities under construction due to the location of the land plot in the protected zone (Case No. 2-1053/2019);
By the decision of the Gelendzhik City Court dated November 16, 2020, the claims against MBF Development OOO for the demolition of facilities under construction were denied.
The court motivated its decision, using the wording of the conclusion, by the fact that the defendant acted in good faith, relying on the information provided to him and permits in the construction of the disputed facilities.
The Administration did not prove the boundaries of the protected zone.

Scope of Services

Our legal practitioners prepared a legal opinion answering the following questions:
1. Were the facilities under construction unauthorized constructions?
2. What is the procedure for establishing a sanitary protection zone? Did the administration of Gelendzhik violate this procedure?
3. How can the actions of the administration of Gelendzhik in issuing building permits and concluding a lease agreement with the right to build an apartment hotel, on the one hand, and amending the master plan prohibiting construction, on the other, be qualified?

Achievements, Results, Importance, Significance of the Project

Result: the administration of Gelendzhik denied the claim for the demolition of the client’s real estate unit. The decision was appealed by the plaintiff on appeal, where our legal position was also upheld. As a result, the construction facility was saved for the client, as well as the funds invested in the facility. The case set a major precedent for the real estate industry. The winning legal position developed by our team has proven our client’s good faith and will help others in similar disputes.