The courts understood how to calculate the fine under the state contract and whether it can be reduced under Art. 333 of the civil code

19 March 2019, Tuesday

The contractor appealed to the court to recover the debt under the state contract. He determined it based on the cost of services rendered, minus the penalty for improper performance of obligations. According to the customer, the penalty had to be considered from the amount of the entire contract, then the penalty would be more, and its debt is less. The courts of three instances agreed with the calculation of the contractor. The Supreme court supported them.

Indeed, the penalty should be calculated based on the price of the entire contract. However, in this case, the courts legally agreed with the calculation of the contractor, applying Art. 333 of the civil code.

We will note that the conclusion is made by the order of the Government of the Russian Federation of 25.11.2013 N 1063 which became invalid. According to this document, the fines were calculated from the contract price. Under the current rules, the penalty is determined based on the price of the contract or stage. This does not mean that the conclusion is no longer valid, because an outstanding obligation may cost less than a stage.

Document: Definition of the Supreme court of 07.03.2019 N 302-ЭС19-629