THE SUPREME COURT OF RUSSIA CLARIFIED THE SPECIFICS OF RECOVERY OF DAMAGES IN CASE OF PLEDGE

The day before, the Economic Board of the Supreme Court of Russia considered the case on the complaint of the pledgee, who was dissatisfied with the deterioration of the condition of the pledged property transferred to him and could not subsequently sell it at the previously announced price.  The courts of first and second instances upheld the applicant and the claim to recover damages from the pledgor in the form of the difference in the value of the pledged items was satisfied, but the district court overturned these orders, having rejected the claim of the applicant.

The pledgee tried to challenge the issued judicial act in the Supreme Court of the Russian Federation, which concluded that damages would be collected from the pledger.

The arguments of the judges of the first instance and the appellate instance boiled down to the fact that the pledgor had actually violated the applicant's rights, since the pledged items (cars) were provided with a delay and in poor condition, which made it impossible to sell them at the price stated in the contract.

At the same time, the district court considered that after the transfer of the pledged items to the pledgee, the agreement concluded between the parties was terminated.  Consequently, the defendant did not have to pay any losses associated with the reduced value of the transferred property.

However, the applicant continued to challenge this decision, pointing out that the pledgor violated his rights and interests, which led to the infliction of losses.  The economic board also agreed with this position and canceled the cassation ruling, having left the judicial acts of the first and appellate instances in force (decision 302-ES21-4332 of August 3, 2021 in case No. A78-10606 / 2019).