MOSCOW, July 16 - RAPSI. The Ninth Commercial Court of Appeals left in force the decision to recover $6,140 instead of the $3.6 million originally claimed from Adidas by the Defense Ministry for violating supply deadlines, the court told the Russian Legal Information Agency (RAPSI/rapsinews.com) on Monday.
Therefore the court has dismissed the Defense Ministry's appeal.
The ministry had told the court that it sought to recover a fine, penalties and interest for non-compliance with a state contract's deadline.
The parties entered into a contract in September 2010 pursuant to which Adidas agreed to supply tracksuits and sport shoes to the ministry. The plaintiff filed a lawsuit against the company after it failed to deliver the sportswear to two military units on time.
In turn, Adidas said the plaintiff unjustifiably overrated the forfeited penalty several times over by claiming 115 million rubles. The defendant said the ministry had calculated the penalty using the total price of the contract as opposed to the cost of the delayed shipment.
Furthermore, one shipment was delayed for 31 days, as opposed to the 55 days stated by the plaintiff. The defendant also said it is illegal to be simultaneously charged a fine, interest and penalties. Adidas requested that the penalty should be decreased to 195,000 rubles ($5,988).
Adidas asserts that the ministry did not sustain any losses.
Adidas is the Russian subsidiary of the Adidas Group, a global sportswear leader.