Moscow's Ninth Arbitration Court of Appeal has upheld a 129.8 million ruble ($4 million) claim filed by property developer Inteco against City Hall, the court's press service said, Interfax reported.
The court rejected an appeal by City Hall against a court ruling in favor of Inteco.
Inteco is seeking compensation for the construction of a kindergarten on Popov Proyezd in the Arco di Sole housing complex.
City Hall did not pay Inteco for the project, arguing that the area of the facilities exceeded the one stipulated by the contract. City Hall filed an $800,000 counterclaim against Inteco, seeking damages for the increased burden on infrastructure.
Yelena Baturina, the wife of former Moscow Mayor Yury Luzhkov, previously controlled Inteco. It was sold to businessman Mikhail Shishkhanov in September 2011.