Belgrade request for legal action - 10 Jevrema Grujica

UNCLAS BELGRADE 001508

SIPDIS
FOR OBO/PRE/BAS/PL - JO ANNE OAKES-BRENNAN
L/BA - PAMELA SAUNDERS
INFO OBO/AM/EUR - ANGELA SHARPE
EUR-IO/EX - STAN PARMENTIER

E.O. 12958: N/A
TAGS: ABLD AMGT
SUBJECT: Belgrade request for legal action - 10 Jevrema Grujica
Street

REF: MENNUTI - OAKES-BRENNAN EMAILS; 02 BELGRADE 2387
02 STATE 187495


1. This is an action message. Please see paragraph 7 for action.


2. Per ref A, post proposes positive legal action to pursue the
USG's interests in a house located at 10 Jevrema Grujica Street in
Belgrade, Serbia. Post signed a long-term lease and title transfer
agreement for this property in 1979 (S-47-FBO-244),with title
transfer to take place after September 30, 2009 with no additional
payment or consideration. During the closure of post 1990-2001,
Zoran ANDRIC, the next-door neighbor of the property, fraudulently
appropriated the house.


3. In cooperation with the owner and his heirs (the JEVDJEVIC
family),the USG has been litigating since 2002 to assert its
rights to this property (refs B, C). In 2007, the Second Municipal
Court in Belgrade ruled against Andric. In July 2009, the District
Court in Belgrade rejected Andric's final appeal and upheld the
ruling of the lower court. The District Court ordered the deletion
of Andric as the owner and the reentry of the members of the
Jevdjevic family in the register; and ordered Andric to vacate the
property and to pay court costs to the Jevdjevic family.


4. Post proposes to continue to pursue the USG's interest in this
property by working with the Jevdjevic heirs to effect the transfer
of title from Andric to them, and then to the USG in accordance
with Article 7 of the original long-term lease agreement. Once
this action is complete, the USG will have standing to petition for
enforcement of eviction of Andric and pursue other civil remedies;
post will propose separately other legal actions against Andric
later if necessary.


5. The property is well-located in a good neighborhood, close to
post's NEC site. If put back in to post's housing pool, it could
probably replace a short-term lease property costing more than
$35,000 per year. If putting the residence back in to the housing
pool is not practical it could be sold. Similar sized plots of
land in the same neighborhood are selling for 750,000 - 1 million
Euros. Local real estate agents' estimates on the selling price of
the property vary from 1 million to 1.5 million Euros, depending
on forecasts of market conditions and the condition of the house.


6. Post proposes the Ninkovic Law Firm for this action. This firm
has represented the USG in this matter since 2003 and has the
experience and background necessary to bring it to a successful
conclusion. The firm is small but headed by experienced litigators
who primarily serve international firms, as well as other
Embassies. The Ninkovic Law Firm made the lowest-priced
technically acceptable offer to a written solicitation for legal
services. Their offer was $150 per hour, with a total estimated
cost of $5,000.


7. Action requested: Post requests OBO and L concurrence to
pursue the USG's interest in the property by retaining the Ninkovic
Law Firm to execute title transfer to the USG. Post also requests
the allotment of $5,000 to cover estimated legal fees related to
this action.
BRUSH