Podgorica, (MINA-BUSINESS) – The Constitutional Court has upheld the constitutional complaint filed by the company Sveti Stefan Hoteli and annulled the decision of the Supreme Court, which had confirmed the lack of jurisdiction of domestic courts in the dispute with the Budva-based company Adriatic Properties.

The Constitutional Court explained that the case concerns the execution of obligations arising from lease agreements for the hotels Kraljicina Plaza and Milocer – Sveti Stefan, noting that the Supreme Court had arbitrarily concluded that domestic courts lacked jurisdiction and that the dispute should instead be resolved through international arbitration.

The Constitutional Court’s decision established that the courts failed to examine the core issue of whether the dispute falls under the exclusive jurisdiction of Montenegrin courts, given that the subject of the dispute relates to the lease of property located in Montenegro.

The Commercial Court, the Court of Appeals, and the Supreme Court of Montenegro had all declared themselves without jurisdiction in the dispute over non-performance of lease obligations, claiming that it involved a foreign element, namely, that one of the contracting parties consisted of several companies headquartered abroad. 

They cited the 2007 lease agreement, which stipulated that any dispute not resolved amicably would be settled before the London Court of International Arbitration.