FindLaw | Legal News & Information

Russia´s Highest Commercial Court Rejects Appeal by Moscow Oil Refinery in Favor of Tamir Sapir´s Joy-Lud

NEW YORK, Jan. 24 /PRNewswire/ --

NEW YORK, Jan. 24 /PRNewswire/ -- On January 22, 2008, the High Arbitrazh Court of the Russian Federation, Russia's highest commercial court rejected for the second time challenges to the 2005 landmark $28 million judgment won by New York businessman and real estate entrepreneur Tamir Sapir's Joy-Lud Distributors International, Inc. against OJSC Moscow Oil Refinery (MOR), announced Tamir Sapir, CEO Joy-Lud Distributors International, Inc. The 2005 judgment was initially decided by international arbitration in Stockholm and later upheld by Russia's High Arbitrazh Court after a protracted legal battle.

This hearing was the latest move in MOR's continued efforts to fight the enforcement of the arbitration award. MOR initially based its latest appeal on the grounds of "newly discovered evidence." This "evidence" MOR argued was that Mr. Sapir's company, Joy-Lud Distributors International, Inc. which since 2005 obtained and has been attempting to execute the award, is not the same company that MOR entered into over 16 contracts with between 1992 and 1998. Yet at the hearing MOR argued that the company that actually entered into the contracts was Joy-Lud Distributors, Inc., a separate company owned and operated by Mr. Sapir. Mr. Sapir's legal team successfully proved that such an argument was false and that there was no newly discovered evidence to over- turn the previous Arbitrazh Decision.

"I'm thrilled Russia's High Arbitrazh Court affirms its commitment to providing a fair and unbiased platform for justice to prevail by denying MOR's appeal and refusing to give credence to such facetious litigation," said, Tamir Sapir, CEO Joy-Lud Distributors International, Inc. "Only if enforced, this decision by the High Arbitrazh Court will be another step closer to fostering trust and goodwill in Western/Russian business relations."

"The Court rejected MOR's appeal as it failed to support its argument with any evidence," stated Gene Burd, a Philadelphia lawyer on Mr. Sapir's legal team. "MOR's argument was groundless as all Joy-Lud Distributors International, Inc.'s corporate documents demonstrated that it was in fact the same company that MOR entered into contract with and which was a party to arbitration and Russian litigation."

"This decision demonstrates a step towards further development of the rule of law in the Russian Federation. With the award upheld for the second time by Russia's highest commercial court, it is now critical that the award be paid if there is hope of alleviating fears for Western companies considering investments in Russia of having no legal recourse. After two and a half years, the world is still watching," said Richard L'Altrelli, General Counsel, Joy- Lud Distributors International, Inc. and The Sapir Organization.

MOR nonetheless continues its efforts to avoid payment of the award. RUBENSTEIN PUBLIC RELATIONS Contact: Olga Shmuklyer Phone: 212-843-8364 Email: OShmuklyer@rubensteinpr.com