STOICA & ASSOCIAțII wins an internal arbitration dispute with major implications in the matter of unpredictability in rental contracts
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STOICA & ASOCIAțII manages to maintain a favorable arbitration decision, with major implications in the matter of adaptation for unpredictability of lease contracts, for the benefit of the lessor. The arbitral dispute took place before the Chamber of Commerce and Industry of the Municipality of Bucharest. An annulment action was filed against the arbitral award, rejected in its entirety by the Bucharest Court of Appeal, this solution being upheld before the High Court of Cassation and Justice.
The litigation concerned a lease agreement concluded by one of the most important investors in Romania (as lessor) and a fast-food restaurant (as lessee). The contract was concluded before the years 2000, for an initial duration of 25 years, followed by two more successive durations of 25 years each, the extension being exclusively at the option of the lessee. Prior to the initiation of the litigation, there was a firm refusal of the tenant to renegotiate the rent amount.
The arbitral tribunal, with a majority opinion, admitted one of the alternative claims formulated on behalf of the lessor, namely that of recognizing a right of unilateral termination in his favor, as a way of adapting the contract for unpredictability.
The team of lawyers from STOICA & ASOCIAțII, which managed the arbitration dispute, was formed by: Valeriu Stoica – Founding Partner – Andreea Stoica – Managing Partner – and Yolanda Beșleăgă – Senior Associate.
“The solution is one of major impact, while specialized literature and judicial practice have focused, over time, on traditional solutions, such as cost or rent adjustments. The recognition of the possibility of exiting the contract before reaching the term was intended to correct the contractual imbalance that generated a state of captivity of the lessor in a contract with a vocation of a total duration of 75 years, at the level of a rent agreed in 1999, much lower in terms of value, compared to the realities of the current real estate market. The particularities of the invocation of unpredictability in this litigation assumed a departure from the classic analysis paradigm and the identification of creative solutions, but at the same time fair and balanced.” said Yolanda Beșleăgă, Senior Associate.
The solution obtained by the team of lawyers from STOICA & ASOCIATII confirms the essential role of the courts – arbitral and judicial -, in terms of the concrete way of adapting contracts for unpredictability, considering the margin of appreciation they have.
Established in 1995, STOICA & ASSOCIAțII has gained national and international recognition in the world of law and the business environment, through its entire activity of legal assistance and representation of a vast portfolio of clients. From its establishment until now, the lawyers of STOICA & ASSOCIATII have proven that they are a strong team, based on the observance of its principles: Fidelitas, Integritas, Fortitudo. STOICA & ASSOCIAțII has acquired an excellent national and international reputation. His professional achievements are recognized in the most important legal guides: Chambers Europe, Legal 500, WTR 1000, IAM Patent 1000.
Article supported by STOICA & ASSOCIAțII
