CEE Legal Matters

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  • EPAM Defends Cortem-Goreltex in Business Reputation Dispute

    Egorov Puginsky Afanasiev & Partners (EPAM) has successfully defended the interests of Cortem-Goreltex, a major Russian manufacturer of explosion-proof equipment, in a dispute regarding what the firm calls, “the protection of business honor, integrity, and reputation.”

    In November 2013, the Italian companies NUOVA ASP and FEAM claimed to the Commercial Court of St. Petersburg and Leningrad Region that the information distributed by Cortem-Goreltex in their dealings with public authorities about violations found when certifying NUOVA’s and FEAM’s products was misleading. Cortem-Goreltex was accused of violating the law on the protection of competition by disseminating allegedly false information defaming the reputation of the plaintiffs.

    EPAM was able to provide evidence that the information provided by Cortem-Goreltex was accurate, and requested a legal enquiry. After this request was approved, NUOVA ASP and FEAM renounced their claims in full.

    On September 18, 2014, the Commercial Court of St. Petersburg and Leningrad Region accepted the rejection of the claim and dismissed the case.

    The EPAM team was led by Elena Legashova, the Head of the firm’s Defamation Practice in St. Petersburg. Legashova was supported by Associate Alexey Karchiomov.

  • US Law School From a Russian Perspective

    US Law School From a Russian Perspective

    Nataliya Cowen is a Special Counsel with the U.S. Securities and Exchange Commission, where she reviews rules of U.S. stock exchanges to ensure that they protect investors and works on various rulemakings, in particular, those related to the Dodd-Frank Act. 

       

    Nataliya Cowen, Special Counsel, U.S. Securities and Exchange Commission

    She received her Bachelor’s Degree and a Master’s degree from Moscow State University in her native Russia before emigrating to the United States in 1991 and, eventually, obtaining a second-career law degree from the prestigious University of Virginia School of Law. Before turning to law, she taught Russian language and literature at several Russian and U.S. universities.  

    We reached out to Ms. Cowen with some questions about her unique role, background, and experience as a Russian immigrant now working in the US government.

     CEELM: How do the education systems of Russia and the United States differ, in your experience? Which do you prefer? 

    N.C.: There are different ways to compare. I can compare both as a student and a professor, because I also taught Russian language and literature at Virginia Commonwealth University, Johns Hopkins University, and George Washington after I came to the United States.  At the undergraduate level students in Russian educational institutions choose their field at the outset and then are prescribed what courses they need to take for their major. There are pluses and minuses of such an approach. On the one hand, 17-year-olds don’t always know what they want to do in life. On the other hand, it encourages serious thinking at a very young age. When I started teaching in the U.S., I was shocked that my students asked me what they need to get a good grade. Russian students would be ashamed to ask such a question because they would want to project an image of caring only about knowledge and education, not about their grades and other materialistic things. This maybe has changed since I left the Soviet Union in 1991, though. At the graduate level, the difference I think is less noticeable.

     CEELM: How did you decide on the University of Virginia School of Law to get your J.D.?  

    N.C.: Rankings, rankings, rankings, plus I was a resident of Virginia, which means that it was a lot cheaper.  In addition, at the University of Virginia, professors really care about their students.

     CEELM: You worked at Coudert Brothers, so you have experience in the law firm world at the highest level. Do you like working in the public sector more than in private practice? Why?

    N.C.: As you probably know, Coudert Brothers was a great firm but it doesn’t exist any more. Working in the public sector is more secure and you oftentimes feel that you make more of a difference for a greater good. However, I always say to young lawyers who start their careers with the government that they should actually start at a law firm and come to the government later. Nothing builds your work ethic as working for a private firm when you know that your job is on the line and you can be fired at any moment.

     CEELM: What are you doing in your current position?  

    N.C.: I work on the implementation of the Dodd-Frank Act (in particular, on transparency for derivatives transactions) and on reviewing rules of stock exchanges to ensure that they protect investors.

     CEELM: What do you like most about your current position?  

    N.C.: It’s very intellectually stimulating and I feel that what I do makes a difference.

     CEELM: Do you have any professional contact with Russia or Eastern Europe in your current position? 

    N.C.: Unfortunately not.

     CEELM: If you have to name one regret from your education or career, what would it be?  

    N.C.: I don’t have many regrets. This is my second career and I have tried various paths: academic, business, and government. Sometimes I think I still will try something else. There is so much in the world to do and learn.

     CEELM: What’s the professional achievement you’re proudest of, or most pleased about — and why?

    N.C.: Only in the United States is switching careers is so common. I studied structural and applied linguistics at Moscow State and I remember saying to my classmate who lived in Paris that I was almost finished with law school. I remember her surprise, because in other countries people start with some path and continue with this path for the rest of their life. I think I am happy (maybe proud is too much!) that I have tried (and succeeded) in different fields. And maybe I am not done yet…

  • RPPP Advises Hypo Alpe Adria Bank Slovenia in First Slovenian Bank Spin-off

    Rojs, Peljhan, Prelesnik & Partners has advised Hypo Alpe Adria International — the bank nationalized in 2009 after extensive expansion in Austria and former Yugoslavia — transform its Balkan network in preparation for its expected sale by year’s end.

    In preparation for the sale, Hypo has been actively restructuring its local entities and transferring their assets into various bad bank or performing entities. As a part of this activity in Slovenia, Hypo has performed a spin-off of a part of the Hypo Alpe-Adria-Bank, the Slovenian banking entity.

    The spin-off was performed as a measure of formal corporate restructuring leading to universal succession on the part of the entity obtaining the transferred assets. RPPP reports that this was the first ever corporate spin-off or division of a bank in the history of Slovenia and required approval from the regulatory authority, the Bank of Slovenia. According to RPPP, the transaction “paved the way for other banks to follow with similar restructuring measures.”

    Rojs, Peljhan, Prelesnik & Partners advised Hypo Group on all aspects of Slovenian law, and drafted the spin-off and acquisition agreement and prepared all ancillary documentation. The firm also represented the bank in front of the Slovenian regulatory authority that approved the spin-off.

    The firm’s efforts were lead by Partner Bojan Sporar, assisted by Senior Associates Ana Grabnar and Simon Zgavec.

  • Varul Persuades Estonian Supreme Court That Sports Results Can be Challenged in Court

    VARUL has represented rally athletes Kaspar Koitla and Andres Ots in a dispute with the Estonian Autosport Union.

    The dispute concerned the exclusion of their team from a rally stage and the awarding of points in the Estonian Rally Championship 2011. On September 15, 2014 the Harju County Court confirmed that a compromise agreement had been reached between the parties, as a result of which Koitla and Ots were awarded the title of “Fastest team in the Estonian Rally Championship 2011.” In a press release published on the basis of the agreement, the parties acknowledged that the dispute had arisen due to the activities of both parties and to incorrect technical data presented by the International Automobile Federation.  

    The Supreme Court expressed a novel opinion in this dispute. According to the Supreme Court, it is possible for participants in a sports event to defend their rights in court if they enter into contracts with the organizers in which the parties also agree on the conditions of cancellation of the results of the event, identification of the winner, etc. Essentially, the Supreme Court acknowledged that sports results can be contested in national civil courts. In addition, the Supreme Court explained that the proceeding in the Estonian Autosport Union’s appeal court, determined by the FIA International Sporting Code, cannot be an obligatory pre-trial proceeding. As a result of this ruling, the Harju County Court accepted the action of Koitla and Ots for the invalidation of their exclusion from a rally stage and for the correction of the points awarded in the championship.  

    According to the firm, “this ruling has major implications for the field of sports law, as it shows for the first time that the Estonian legal system enables sports results to be contested in national courts.”

    The VARUL team was led by Partner Martin Tamme and Attorney Marko Kairjak.  

  • Interlegal opens an office in Istanbul

    Interlegal (Odessa), focused on Shipping and International trade in Black Sea region, has announced a new partner, Mehmet Dogu who will lead the firm`s practice in Turkey.

    Mehmet has got more than 20 years practice experience in shipping able to resolve hard cases using his deep knowledge, primarily revolving around shipping.

    Interlegal became the first law firm to start practicing in all Black Sea countries. Now the firm serves clients in Ukraine, Turkey, Moldova, Georgia and throughout the region in countries such as Russia, Bulgaria and Romania. 

    This article is powered by our friends at UJBL. It was originally published here. 

  • VEGAS LEX Advises on Tolling System Concession Agreement

    VEGAS LEX has advised Rosavtodor (the Russian Federal Road Agency) on the negotiation and execution of a concession agreement with RT-Invest Transport Systems for the introduction of a tolling system for vehicles heavier than 12 metric tons.

    The firm describes the agreement — which was signed on September 29, 2014 — as kick-starting “one of the largest and most high-profile investment projects in Russia.” The firm claims that “the project will help expand and improve the quality of roads and the related infrastructure in Russia, as — according to experts cited by the firm — the damage that one truck heavier than 12 tons does to the road surface is equal to that done by 20,000 cars. Not wholly coincidentally, perhaps, the firm also estimates that the tolling system will yield an income of around RUB 1 trillion (approximately EUR 20.1. billion) to the Russian budget. 

    Pursuant to the agreement, RT-Invest Transport Systems agrees to ensure “a comprehensive implementation of the project”, including design, construction, launch, and subsequent upgrades of the system. The system is to go on stream in November 2015. 

    The firm describes the project as “one of the largest concession projects with no government co-financing,”  as it will be fully financed with RT-Invest Transport Systems’ own and borrowed resources.  The concession agreement was worked out and coordinated in one month, which the firm claims broke a record in the Russian and East European business practice.

    Rosavtodor was represented by the Advisers’ Group, which includes VEGAS LEX (for organizational and legal issues), the InfraONE First Infrastructure Company (for investment and financial issues), the GLONASS nonprofit partnership (for technical consultancy) and the Navigator Group (for technical supervision). VEGAS LEX Partner Albert Eganyan said that, “this draft concession agreement effectively reflects a balance of the parties’ interests.” Eganyan, who also chairs the VL Partners’ Council and the InfraONE Board of Directors, continued: “I am glad that our team of consultants was of use to the project and the state.”

  • Tark Grunte Sutkiene Advises on Sale of Talinn Office Building

    Tark Grunte Sutkiene has advised on the sale of the Flora office building in Tallinn to Lumi Capital and Estonian private investors.  

    According to the firm, the building — which contains 4,400 square meters of gross leasable area — has a long and distinguished history and “has accommodated a great number of successful small and medium-sized businesses.”  The parties have agreed not to disclose the cost of the deal. 

    Flora was advised by Tark Grunte Sutkiene Partner Risto Vahimets.

  • TSAA Advises on World Class Romania Acquisition of World Class Timisoara

    Traila, Stratulat, Almasan, Albuescu has advised World Class Romania on its takeover of World Class Timisoara, its 3 year-old franchisee in the Romanian west. The TSAA work on the deal was led by Partner Silviu Stratulat. 

    World Class Romania released a statement explaining the move: “In light of the local market demand in Timisoara in the last 3 years, World Class Romania, a leader in the local wellness industry, … has decided to fully take over the local business of its local franchisee in Timisoara. World Class Timisoara will, as a result, align its quality standards to that of the clubs in Bucharest and Cluj, bringing to Timisoara premium services and facilities.” 

    According to the same press release, the newly re-acquired club will require an original investment of EUR 850,000 in its first phase of reconstruction and development. Future investments in the following year are expected.

    This article is powered by our friends at LegalMarketing.ro. You can find the original full article here (Romanian).

  • Wolf Theiss Advises Pivovarna Union in Sale of Kosovo Brewery

    Wolf Theiss has advised Pivovarna Union on the sale of 57.63% of its shares in the Birra Peja brewery in Kosovo to the Devoli Group beverage producer.

    Pivovarna Union is a member of the Pivovarna Lasko Group, the largest Slovenian brewery, the shares of which are listed on the Ljubljana stock exchange. According to Wolf Theiss, “the sale is part of an ongoing process of divestments of non-core assets, which members of the Pivovarna Lasko Group undertook vis-à-vis its banks in a multi- party financial restructuring agreement that concluded in April of this year, making this a successful milestone on Pivovarna Unions’s way to turn around.”

    Wolf Theiss advised on both Slovenian law and Kosovo law. Wolf Theiss drafted and negotiated the share purchase agreement and ancillary documentation and provided advice on all relevant aspects of corporate law, competition law, and IP. In addition, Wolf Theiss assisted in the negotiations regarding license agreements for Pivovarna Union brands, so that Birra Peja can continue trading these well established brands in Kosovo.

    The transaction team was coordinated by Wolf Theiss Partner Markus Bruckmuller and Senior Associate Klara Miletic. Partner Christian Mikosch and his team provided assistance on aspects of Kosovo law. Financial advisor to the seller was UniCredit Bank Austria. Wolf Theiss continues to advise the Pivovarna Lasko Group on its restructuring as well as in its ongoing search for an investor by way of a capital increase. 

    Earlier this year, Wolf Theiss advised the same brewery in Slovenia on a EUR 300 million debt restructuring (reported on by CEE Legal Matters on May 16, 2014).

  • TGS Announces Role on Nordic Capital — ABB Full Service Acquisition

    Tark Grunte Sutkiene has announced that it advised Nordic Capital on its acquisition of the Full Service business from ABB Group, originally reported on by CEE Legal Matters on September 4, 2014.

    TGS worked alongside Baker & McKenzie in representing Nordic Capital, while White & Case and LAWIN represented the ABB Group. The transaction is expected to close in Q4 2014.

    Tark Grunte Sutkiene Senior Associates Tanel Tark and Rene Frolov assisted Nordic Capital in submitting a notice of concentration to the Estonian Competition Authority and in related proceedings