ECHR: Georgia to Pay EUR 210,000 to Two Firms

The European Court of Human Rights (ECHR) ruled on September 27 in favor of the Georgian firms Amat-G Ltd and Iza and ruled that the Georgian state has to pay EUR 200,000 and EUR 10,000, respectively, to these firms for pecuniary damages. In the case of Iza, the state should also pay an additional EUR 1000 for non-pecuniary damages, ECHR reported.

Amat-G Ltd supplied the Georgian Ministry of Defence with fish products in 1998-99. In 1999 the company brought proceedings against the Ministry for a breach of contract and damages – as they had not been paid in full for their services. Although the Defense Ministry was ordered to pay compensation, the debt was never paid.
 
The constriction firm Iza, which had a building repair contract with a State school in 1998, received only part of the payment from the Ministry of Education. The applicant company complained that it had difficulty carrying out their business activities while this debt remained unpaid. The company successfully sued the Ministry of Education in 2001 but orders to pay the debt were never enforced.

ECHR noted that there was a persistent problem of non-enforcement of final judgments delivered against State institutions in both cases.

The ruling of ECHR is not final, which means that within three months of the date of a Chamber judgment any party to the case may request that the case be referred to the 17‑member Grand Chamber of the Court.

This post is also available in: ქართული (Georgian) Русский (Russian)