Russian Supreme Court calls for reasonable use of penalty reduction
MOSCOW, June 5 (RAPSI) – The Supreme Court of Russia has called to reasonably apply cuts in penalties because their reduction can increase the economic attractiveness for offenders.
Penal sums disproportionally lowered by ten folds lose their economic significance as penalties are used to impose additional damages on offenders that outrun their illegal income and therefore make their wrongdoing economically unviable, Chairman of Russia’s Council of Judges Viсtor Momotov said during a meeting of the Zamyatnin Discussion Club on Wednesday.
Momotov reminded that this problem is urgent in consumer rights protection cases.
However, he agreed that plaintiffs often demand colossal penal sums in their claims. In situations, when the amount of sought damages is incommensurate with the effect of breach of obligations, courts may reduce penalty, Chairman of Russia’s Council of Judges noted.