An appeals court on Thursday revived a lawsuit alleging that bad advice from Denver law firm Holme Roberts & Owen led a European bank to lose more than $100 million on a Russian investment.
The Bank of Austria Creditanstalt alleges that HRO misadvised it when the bank created a Russian partnership in the mid-1990s to buy stock in RAO Gazprom, the country’s natural- gas monopoly.
In 2000, Russian authorities seized the partnership’s Gazprom stock and charged it with criminal offenses. The bank claims it followed HRO’s advice in structuring the partnership, but learned later the arrangement violated Russian tax laws.
The law firm responded that under Russian law, the bank had no legitimate claim against it.
HRO closed its Moscow office in 1998.
Bank of Austria Creditanstalt and its Russian affiliates sued HRO and former Moscow partner Margaret McLean in 2001 in Denver District Court. A judge dismissed the case in 2002, ruling that Russian law did apply as HRO contended, and that the bank had no claim under that law.
The Colorado Court of Appeals on Thursday upheld the lower court’s ruling on Russian law. But the court rejected the dismissal, saying the Bank of Austria Creditanstalt does have a claim.
The case most likely will go back to Denver District Court.
“We are pleased that the suit will be going forward,” said Bank of Austria Creditanstalt attorney John Shope, of Foley Hoag in Boston.
The bank also is suing New York-based Chadbourne & Parke, which bought HRO’s Russian office in 1998.
Representatives of HRO did not return calls Thursday.
Staff writer Greg Griffin can be reached at 303-820-1241 or ggriffin@denverpost.com.
