The Supreme Court examined a case in which the plaintiffs sought to recover an apartment that had been transferred to a creditor pursuant to a bailiff’s decision later declared invalid. In an effort to regain the property, the plaintiffs filed a series of claims, including recognition of the absence of the creditor’s title, recognition of their own ownership with restoration of the USRN record, cancellation of the state registration of ownership, application of the consequences of declaring the bailiff’s resolution unlawful, and recovery of the apartment from the company’s unlawful possession.

In each instance, the courts dismissed the claims, citing the use of an improper remedy and the need to challenge the underlying registration acts and transfer deed. Ultimately, the final claim was rejected as time-barred, on the grounds that more than four years had elapsed since the plaintiffs became aware of the bailiff’s decision.

The Supreme Court disagreed with this approach. It emphasized that, in light of the plaintiffs’ multiple proceedings, their consistent pursuit of judicial remedies, and their exhaustion of available legal avenues to challenge the registered title, refusing protection on limitation grounds undermines the principles of effective restoration and judicial protection of rights.

Ekaterina Schmitt, a lawyer at Timofeev, Vahrenwald & Partners, noted in her comment for Advokatskaya Gazeta that the Court’s position is both reasonable and practically significant: a claimant’s active and consistent efforts to restore their rights must be considered when assessing whether the limitation period has expired. The limitation period, she stressed, is intended to protect against prolonged inactivity, not to penalize a plaintiff for selecting an incorrect remedy.

She further added that the Supreme Court once again reaffirmed the inadmissibility of a formalistic approach to claims and the obligation of courts to apply the law based on the substance and intent of the claim, rather than its technical formulation.

“Advokatskaya Gazeta” (Russian Advocacy Newspaper) is the official body of the Russian Federal Bar Association (published since 2007). The Newspaper’s publications are devoted to the most important legal topics, case law, as well as legal practice and issues of advocacy.

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