The Ministry of Economy and Industry continues its efforts to return the shares of the Plovdiv Fair from the Varna Municipality to the State
“Montages EAD has filed three legal claims against OZK-Insurance related to insurance to guarantee advance payments and good performance of dam repair works. This was stated by the Minister of Economy and Industry Dr. Petko Nikolov during a hearing in the National Assembly. He stressed that, after taking note of the factual situation and the existing written documents filed in the case, a legal analysis had been prepared, as a result of which an assessment had been made as to the appropriateness of proceeding with the proceedings. In view of the allegations outlined in the applications and taking into account the evidence submitted by the parties, including the General Terms and Conditions of OZK-Insurance S.A. specifically adopted for Montages S.A., effective as of 01.12.2018, which do not contain a clause for the release of OZK-Insurance S.A. from liability due to the affiliation between Montages and DCC, and after reviewing the established case law, it was decided to voluntarily settle the dispute between the parties. In the present case, it should be borne in mind that the related parties clause was the only argument for bringing the cases in question, but it does not exist in the quoted General Conditions.
Minister Nikolov pointed out that under the settlement, OZK – Insurance JSC paid to Montages EAD an amount of BGN 765 357.40, representing the paid court costs and lawyers’ fees in the cases. Of these, the state fees paid in the three lawsuits against OZK Zastrahovane amounted to BGN 572,829.40, and under the contracts for the legal representation with one law firm, the fees payable total BGN 288,780 including VAT.
According to him, according to the legal opinion filed, the lawsuits filed by Montages EAD would likely be lost due to a number of rebuttable arguments, as well as the fact that there is an admission by the law firm representing the Ministry of Economy and Industry, which filed the lawsuits, that the signed Terms and Conditions presented would have been dissuasive to the court in considering the claims. The Minister stressed that it was impressive that the previous leadership of the Ministry of Economy had worked only with the law firm in question, with which they had negotiated in various cases a huge amount of fees.
Responding to another MP’s question, Minister Nikolov said that the previous Minister of Economy had concluded 4 contracts for legal assistance with the same law firm, with which he had agreed fees for more than BGN 1.7 million.
The law firm in question has filed 6 lawsuits, on which the budget has spent more than BGN 5.6 million on state fees alone. The legal aid contracts also agreed additional fees payable to the selected law firm in the amount of BGN 829 623. It was agreed that the sums were payable after success at first instance, with no stipulation that the first instance judgment should have been entered in favour of the Department. This puts the IIA in the position of owing huge payments to the law firm chosen by the previous minister, despite the fact that the decision of the trial court is being appealed to a higher court.
During the hearing, his words also made it clear that the Ministry of Economy and Industry continues its efforts to return the shares of the Plovdiv Fair from the municipality of Varna to the patrimony of the state.
Dr. Nikolov pointed out that the Ministry of Economy and Industry, within the statutory deadline, appealed against the decision of the Sofia City Court of 22 July this year in the part in which the court rejected the claim brought by the state against the Municipality of Varna and International Fair Plovdiv AD and in the part claiming nullity due to contradiction with the mandatory norms of the Municipal Property Act. “The appeal was filed the other day, and we did not use a law firm for it, we did not pay 300 or 400 000 leva in fees, but our directorate, which has 20 lawyers, drafted the appeal and it was submitted to the Court of Appeal,” the minister said.