Another Supreme Court of Cassation Victory in a Multimillion Shareholder Dispute

by ZS Law

Živković Samardžić’s dispute resolution team secured Supreme Court of Cassation victory for Vlade Divac, former professional basketball player and incumbent President of the Serbian Olympic Committee, in proceedings related to certain share transfers in an alcoholic beverages producer and a water bottling plant.

Vlade Divac was a defendant in a multimillion litigation initiated by Vojin Djordjević, Serbian businessman, who requested certain share transfer agreements related to shares in an alcoholic beverages producer and a water bottling plant, he entered into with Mr. Divac, to be nullified or rescinded, since having led to a different outcome than the one envisaged originally in a Letter of Intent signed between the parties in November 2006.

After the Commercial Court in Belgrade decided in favor of Mr. Divac in 2013, as well as the Commercial Appellate Court in the appellate proceedings in 2014, the Supreme Court of Cassation has found that despite the fact that the ownership structure in two companies was indeed different than the one envisaged originally in the Letter of Intent, it happened due to the plaintiff’s failure to act in accordance with his contractual obligations rather than an error or deception. Thus, the Supreme Court of Cassation has finally confirmed the decisions of lower-instance courts

Furthermore, the Supreme Court of Cassation confirmed the legal standpoint of the Serbian jurisprudence that share transfer agreements after they have produced effects by registration of the transfer in the Company Register, cannot be subject to annulment or rescission on the grounds provided in the Law on Contracts and Torts, but rather the proceedings for the nullification of the incorporation of the company, as provided in the Companies Act, should be initiated.

Živković Samardžić team successfully representing Mr. Divac was led by Miloš V. Milošević, Dispute Resolution Partner and Marko Trišić, Dispute Resolution Senior Associate.

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