An unjust enrichment case against Bank of Cyprus was dismissed for lack of jurisdiction
The Moscow Commercial Court has dismissed a lawsuit filed by Novosibirsk company Algeba against the Bank of Cyprus seeking 380 mln rubles (approx. $12.1 mln) in compensation for allegedly unjust enrichment.
The suit was dismissed for lack of jurisdiction. The plaintiff justified the decision to file its lawsuit with a Moscow court by stating that the bank has its offices in Russia. However, the defense argued that these offices were not involved in the dispute in any way.
A representative of Colofon Investment Limited, involved in the proceedings as the third party, earlier said that the plaintiff had erroneously transferred the money into its Bank of Cyprus account. Colofon ordered the bank to transfer the money back, however, this was not undertaken. In March, Cyprus negotiated financial assistance from the EU and IMF on condition that it would restructure its banking system. Two of the country’s largest banks, Bank of Cyprus and Cyprus Popular Bank, froze their client accounts. Later that month, Cyprus announced the start of its banks’ restructuring.
According to media reports, Algeba is a subsidiary of RosEuroDevelopment, one of the leaders in the Russian commercial property market.
All materials are protected by copyright of TV&P and the provider of the content RAPSI. If you need further information on the subject, contact Kristoffer Svendsen.