The Budva municipality will not have to pay the company "Lovćen film" 600.000 euros for the time being, because the "Cadmus city Budva" film festival was not held three years ago.
Thus, the Court of Appeal annulled the judgment of the Commercial Court, which ruled that the Municipality of Budva and the Public Institution "Grad Teatar" should pay "Lovćen Film" 565.955 euros.
"The procedure is returned to the same court for a new trial, with the new main hearing being held before a different judge," states the decision of the Appellate Court, which "Vijesti" had access to.
In the explanation of the verdict, it is written that the contract on holding the festival was concluded on July 15, 2015, for the period from 2015 to 2019.
The municipality and the "City Theater" were obliged to provide financial support for its maintenance.
"It is a fact that the Municipality and Ju Grad Theater did not fulfill this obligation for 2015, but this does not imply their automatic responsibility for the resulting damage, as the Commercial Court wrongly finds," the verdict reads.
During the court proceedings, as stated, the Municipality indicated that its obligation according to the contract from July 2015 was to provide financial support for the organization of the film festival, but not to enable the organization of the entire festival, as well as that "Lovćen film" was not ready to invest his financial resources, and he expected a profit.
"Lovćen filma", which owns the "Cadmus cineplex" cinema, did not answer "Vijesti" what kind of film festival it was, nor who signed the contract on its holding.
The film festival was never held, nor was the public ever informed that the contract had been concluded.
This dispute is just one in a series of court cases that Lovćen Film and the Municipality are conducting against each other.
The previous DPS government concluded dubious contracts, due to which in the past year and a half the Montenegrin courts ruled against the Municipality of Budva, and the citizens paid millions in damages.
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