Raised ramps arrive at toll booth

The Court of Appeal rejected the state's appeal and upheld the Commercial Court's verdict, according to which Montenegro will have to pay the company "Univerzal Monte" 4.000.000 million euros in a dispute over the construction of the Meljine - Petijevići road, with default interest from February 1, 2022. The state will also have to compensate the private party for the costs of the civil proceedings in the amount of 21.970 euros.

That decision was made in early September by the Appellate Panel, which consists of Diana Radulović, Ognjana Boljević i Mirjana Vlahović, which states that the state's complaint is unfounded. "Univerzal Monte" initiated a dispute against the state over the road in Herceg Novi in ​​2022.

According to "Vijesti", the Protector of Property and Legal Interests of Montenegro Bojana Cirovic will file a review of this decision of the Court of Appeal.

The verdict in favor of the private individual was issued at the end of May by a judge of the Commercial Court. Vladimir Bulatović, and it also rejected the state's counterclaim seeking to declare the Agreement on the Termination of the Build, Operate and Transfer (BOT) Agreement for the Meljine - Petijevići Road null and void. The Ombudsman then appealed against this decision in early June, and the dispute ended up in the Court of Appeal for the second time.

"The appeal of the defendant - counter-plaintiff is dismissed as unfounded and the judgment of the Commercial Court of May 29, 2025 is confirmed. The first-instance judgment was rendered without any significant violations of the provisions of civil procedure that this court monitors ex officio, based on a fully and accurately determined factual situation, with the proper application of substantive law, and was not affected by any significant violation of the Civil Procedure Act (CPA), which is pointed out in the appeal, because the judgment contains sufficient and valid reasons on the decisive facts, which arise from the evidence presented. Since the allegations of the defendant - counter-plaintiff's appeal did not cast any doubt on the reasons for the first-instance judgment, the appeal should have been dismissed as unfounded and the first-instance judgment confirmed," the Court of Appeal's judgment and its reasoning state.

The economic decision was correct.

The Ombudsman specifically complained about the violation of the civil procedure under the Civil Procedure Code, the incorrect and incomplete determination of the factual situation and the incorrect application of substantive law. She states that the counterclaim is based on the fact that the Agreement on the Termination of the BOT for the Meljine - Petijevići Road from 2021 was concluded contrary to the decision on borrowing for that year, which makes it null and void and that the amount of compensation should have been confirmed by an auditing company. She also claims that in order to pay 4.000.000 euros, it is necessary for "Univerzal" to fulfill its obligations under the agreement, i.e. submit the necessary documentation and complete the rehabilitation of the section of the road at Kotobilje.

The Appellate Panel states that the Agreement on the Termination of the BOT Agreement is not null and void, because it stipulates the obligation of the state to pay 4.000.000 euros and for "Univerzal" to submit all available documentation on the construction of this road, as well as to complete the rehabilitation of the part of the road on Kotobilje that has been started. They pointed out that the nullity of the contract can only be invoked by the party who, at the time of its conclusion, could not and should not have known about the cause of the nullity, i.e. that only a conscientious contracting party receives legal protection and that a person who is at fault cannot invoke nullity.

"The first instance court also concludes that the plaintiff has fulfilled all obligations assumed under the Agreement of 7 May 5 - submitted all available documentation relating to the construction of the road that is the subject of the BOT Agreement and completed the rehabilitation of the part of the road in Kotobilje that has been initiated, for which reason the defendant is obliged to fulfill its obligation - the payment of the amount of 2021 euros. And in the opinion of this court, the first instance court correctly decided in the stated manner. It provided sufficient, clear and convincing reasons for its decision, which this court accepts in all respects and refers the appellant to them," the Appellate Court pointed out.

Contract with the company "Univerzal Monte", behind which stands a Serbian businessman Vuk Hamovic, which built this road in 2008 under an arrangement under which it was to be used for 20 years and returned to the ownership of the Municipality of Herceg Novi, was amicably terminated by the Government of the Prime Minister on May 7, 2021. Zdravka Krivokapića, after which the toll on this section ceased to be charged. On behalf of the Government, the current Prime Minister signed this agreement Milojko Spajic who was then the Minister of Finance and Social Welfare, and was also signed by the Mayor of the Municipality of Herceg Novi Stevan Katic.

The government then tasked the Ministry of Finance with allocating four million in the budget for the following year, in accordance with the agreement, to pay compensation to “Univerzal Monte”. That ministry, headed by the then-current Prime Minister Milojko Spajic did not do so. Instead, at the last session of the former Government in April 2022, a conclusion was reached to pay this money from the budget reserve.

That obligation of the Government Dritan Abazović did not execute, but forwarded the documentation related to this deal to the Special State Prosecutor's Office (SDT), while "Univerzal Monte" filed a lawsuit against the state. The state responded with a counterclaim, seeking the annulment of the agreement. SDT previously told "Vijesti" that they are following the litigation in the Commercial Court, because the outcome will be important for the prosecutor's decision.

First verdict overturned

The Commercial Court has already issued a ruling once, in November last year, and obliged the state to pay the company "Univerzal Monte" 4.000.000 euros, while rejecting as unfounded the then request for payment of VAT of 840.000 euros, which this company also sought in a lawsuit.

The state's counterclaim was then dismissed as an impermissible one, but even then there was a possibility of appeal. The Ombudsman filed an appeal with the Court of Appeals, proposing that the verdict be reversed and the lawsuit dismissed, that the counterclaim be accepted or that the decision be quashed and the case be returned for a new decision. "Univerzal Monte" contested this appeal and requested that it be dismissed as unfounded.

The Court of Appeal overturned the verdict at the end of last year and emphasized in its ruling that the Commercial Court had issued it in violation of the Law on Civil Procedure, i.e. that someone who could not be a party participated in the proceedings or was not represented by an authorized person. It is alleged that the state's counterclaim seeking the nullity of the BOT was rejected because the Municipality of Herceg Novi was not included in the appeal, although it is part of that agreement.

The dispute was then returned to the Commercial Court for re-determination, after which the final hearing was held at the end of April this year.