RUSTAVI 2 BROADCASTING COMPANY LTD AND OTHERS v. GEORGIA - 16812/17 (Judgment : Remainder inadmissible : Fifth Section) [2019] ECHR 574 (18 July 2019)

RUSTAVI 2 BROADCASTING COMPANY LTD AND OTHERS v. GEORGIA - 16812/17 (Judgment : Remainder inadmissible : Fifth Section) [2019] ECHR 574 (18 July 2019)

The Supreme Court found that the share-purchase agreements were voidable due to duress exerted by state officials, as evidenced by the claimant's asylum, criminal complaint, and recognition as a politically persecuted person. The limitation period was interrupted by the criminal complaint, making the claim timely. The lower courts erred in applying Article 54 instead of Article 85 of the Civil Code. The current owners could not be considered bona fide acquirers. Allegations of judicial bias were unsubstantiated.

Citation
[2019] ECHR 574
Parties
Claimant: K. K.; Respondent: Rustavi 2; Respondent: H. Ltd; Respondent: N.; Respondent: G.-T. Ltd; Respondent: TV Sakartvelo
Jurisdiction
European Union
Judgment Date
18 July 2019
Procedural Posture
Civil Ownership Dispute / Final Judgment by Supreme Court (cassation)
Outcome
Tbilisi Court of Appeal's decision quashed; case decided anew by Supreme Court; share-purchase agreements voided due to duress; current owners not bona fide acquirers; procedural complaints dismissed.
Legal Topics
Ownership Dispute, Duress in Contracts, Statute of Limitations, Interim Injunctions, Judicial Impartiality
Civil Law Contract Law Media Law Ownership Dispute Duress in Contracts Statute of Limitations Interim Injunctions Judicial Impartiality

Case Brief

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Parties

K. K.

Claimant

Rustavi 2

Respondent

H. Ltd

Respondent

N.

Respondent

G.-T. Ltd

Respondent

TV Sakartvelo

Respondent

Procedural Posture

Civil Ownership Dispute / Final Judgment by Supreme Court (cassation)

Legal Issues

  1. 1 Whether the share-purchase agreements for Rustavi 2 were void due to duress under Article 85 of the Civil Code
  2. 2 Whether the claims were time-barred under the applicable statutes of limitation
  3. 3 Whether the interim injunction freezing Rustavi 2's assets was lawful and proportionate

Ratio Decidendi

The Supreme Court found that the share-purchase agreements were voidable due to duress exerted by state officials, as evidenced by the claimant's asylum, criminal complaint, and recognition as a politically persecuted person. The limitation period was interrupted by the criminal complaint, making the claim timely. The lower courts erred in applying Article 54 instead of Article 85 of the Civil Code. The current owners could not be considered bona fide acquirers. Allegations of judicial bias were unsubstantiated.

Court Disposition

Tbilisi Court of Appeal's decision quashed; case decided anew by Supreme Court; share-purchase agreements voided due to duress; current owners not bona fide acquirers; procedural complaints dismissed.

Orders

  • Share-purchase agreements of 26 December 2005 and 17 November 2006 declared void due to duress.
  • Ownership of Rustavi 2 to revert to claimant K. K.