The Municipality of Pljevlja plans to contest the recent ruling from the Court of Appeal, which in a retrial determined that the Coal Mine is not required to pay 2.37 million euros for breaching the Contract on Compensation for Development of Construction Land, initially signed nearly two decades ago.

This was confirmed by the mayor of the municipality, Dario Vranes, in a statement to “Vijesti”.

The Court of Appeals reached this conclusion in a retrial after the Supreme Court, in November of the previous year, granted the Coal Mine’s request to review the prior judgment that had mandated the company to pay 2.37 million euros to the Municipality of Pljevlja.

“There are significant indications that the Supreme Court’s decision is politically influenced. In various aspects, the state treats Pljevlja with indifference, perceiving our city solely as a coal mine. It is evident that the Municipality of Pljevlja has suffered losses in this prolonged process, and it is clear that the payment of damages is being unnecessarily delayed. Regardless, we will safeguard the interests of the Municipality,” stated Vranes.

When “Vijesti” inquired about his assertion of political motivations behind the verdict, and whether it was influenced by the previous or current regime, Vranes succinctly replied: “both.”

The prolonged legal battle between the municipality and the Coal Mine has stretched for nearly 12 years. After the initial verdict was finalized, the Coal Mine fully settled the entire debt to the local administration by July 1 of last year, despite previously seeking to pay in installments.

Following the Supreme Court’s approval for the revision of the previous Court of Appeal ruling and remanding the case for further determination, the Municipality refunded the funds to the Coal Mine in November.

In mid-August 2004, leaders from the Municipality and the Coal Mine signed an agreement outlining the fee for covering the development costs of the construction land, which the Mine was expected to contribute towards the multimillion-euro project involving the relocation of the Ćehotina River and the opening of the Cementara mine. The agreement bound the Coal Mine to finance part of the planning and project documentation as well as to invest in some of the facility construction, using the development fee.

Due to the Coal Mine’s failure to meet its obligations within the specified timeframe, the Municipality initiated legal action. Throughout the 12-year litigation period, several judgments were issued, some of which favored the state-owned company.

In the rehearing, the Court of Appeal directed the Coal Mine to fulfill its obligations per the Contract on Compensation for Development of Construction Land by financing the investment works for the regulation of the Breznica River bed over a distance of 600 meters and deepening the Ćehotina River bed in an unregulated section over 3.5 kilometers, to be completed within two years from receiving the judgment under the threat of enforcement.

All other claims from the Municipality were dismissed.

The Municipality sought for the Coal Mine to finance the project documentation linked to the development of the main design for a wastewater treatment plant in Židovići, continuing from the completed conceptual design, as well as the main design for treating water from the Otilovići reservoir as part of the facility on Pliješa, as a fulfillment of contractual obligations.

The requests for the Coal Mine to finance investment works related to the completion of the remainder of the fecal collector for the wastewater plant in Židovići, the main drinking water supply for various zones, new facilities at the Pliješa plant, and other related improvements were also denied.

The Court of Appeal reasoned that the claim was valid regarding the defendant’s obligation to finance the investment works for the regulation of the Breznica River bed and deepening the Ćehotina River bed, as the Coal Mine failed to provide evidence of fulfilling its contractual obligations regarding these unrealized works.

“Concerning the other works, the plaintiff admitted during the second-instance proceedings, as validated by the construction expert’s evaluation, that part of the project documentation and investment works, which were the defendant’s contractual obligations, had been completed and financed by the plaintiff or other authorities… Since these works were undeniably executed and paid for, the plaintiff’s request to mandate financing from the defendant per the Contract on Compensation for Development of Construction Land is deemed unfounded. The timing of the plaintiff’s insistence that these works were conducted post-lawsuit or during court proceedings is irrelevant since the court decides based on the conditions existing at the main hearing’s conclusion,” elaborated the verdict.

The court further concluded that the Municipality of Pljevlja cannot claim 2.372 million euros from the Coal Mine for work executed during this proceeding.

“Based on the legal stance articulated in the Supreme Court of Montenegro’s decision Rev.Ip.br.18/24 dated 14.10.2024, the specified payment amounting to 2,372,844.73 euros, made by the plaintiff for the executed work that fell within the defendant’s contractual responsibilities, cannot be claimed in this litigation, as it was settled in the first-instance proceedings. The plaintiff might seek recovery of the sum paid for the work related to the defendant’s obligations in a separate court proceeding,” the Court of Appeal’s ruling noted, among other points.

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