Municipality of Zagubica wins the dispute against Europellet Italia – The Italians promised and failed to build a factory

(The municipality of Zagubica) The municipality of Zagubica has won the dispute which it filed in 2013 at the Higher Court in Pozarevac against the company Europellet Italia from the northern Italian town of Monfalcone due to the company's failure to perform its obligations under the contract on the construction of a factory and for EUR 128,903 in damages. The dispute was filed because the Italian company had failed to build a wood pellet factory within the time frame agreed in the 2010 contract, for which it had received 2.5 hectares of land from the municipality.

- We have received the judicial ruling in our favor, according to which the land has been returned to the municipality. We have built the entire infrastructure for the investor on it, including access roads, street lighting, water supply, sewer, electricity and internet connections – says president of the municipality of Zagubica Safet Pavlovic, who was the plaintiff's representative. In signing the contract, the Italian investor deposited the bank guarantee in the amount of EUR 128,903 for possible damages in case of failure to perform obligations under the contract.

Since the defendant failed to build the factory within the agreed time frame and employ 34 workers, the municipality of Zagubica tried to cash in the bank guarantee. However, following this attempt, they received the notice that Europellet Italia had no assets in its account and therefore couldn't pay the agreed amount.

- We managed to re-acquire the land in court, but we are yet to be paid for the damages. This is a bit more difficult, since the accounts of the Italian company are blocked – said Pavlovic.

The municipality of Zagubica sought an additional RSD 120,000 in its dispute, which is the amount paid to the Udine law firm for the attempt at the execution of the bank guaranteed in Italy. Since the Italian company's accounts are blocked, the municipality will have to wait for this payment as well.

Opština Žagubica

municipality of Zagubica

Europellet Italia

Monfalcone

Safet Pavlovic