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Interlegal defended successfully interests of the large grain trader from UAE

25.04.14

The dispute arose from the contract whereupon the Seller was obliged to supply 30,000.0 MTS of barley (on FOB terms) and the Buyer, whose interests were represented by Interlegal, was obliged to accept and to pay for the cargo. Cargo handling was delayed for nine days as per contract terms. The cause of such delay was the Seller’s contestation against the result of draft survey and weight of supplied cargo.

During negotiations, in order not to increase the demurrage amount, the Parties agreed that final weight of supplied cargo shall be determined in the port of discharge. Full payment for supplied cargo shall be performed after the final weight is fixed. The demurrage amount for nine days resulted to 132,450.00 US dollars. The claim on payment of this amount was secured against the Seller.

Survey at the discharging port showed that the Seller supplied 94,725 MTS more than stated in bills of lading.

Therefore the Seller (whose interests were represented by English lawyers) requested the Buyer to pay 23,491.80 US dollars for 94,725 MTS of cargo supplied by the Seller and accepted by the Buyer over the contract volume.

Also, the Seller submitted its own calculation of laytime at the loading port which stated that the vessel was not on demurrage but loading was performed before completion of laytime. Therefore the Seller claimed for dispatch in the amount of 1,192.71 US dollars. Moreover, the Seller claimed interest for delay in payment in the amount of 17,066.34 US dollars. Therefore the amount of the Seller’s claim made up 41,750.85 US dollars. In order to prevent increase of fine for delay in payment under the contract the lawyers of Interlegal have signed escrow agreement whereupon the Buyer shall pay indisputable price for the cargo and the demurrage amount (132,450.00 US dollars) shall be deducted from cargo value and shall be placed on escrow account until the Parties settle the dispute amicably or by means of arbitration.

In the process of negotiations experts from Interlegal proved unlawfulness of dispatch accrual by the Seller and provided for amicable settlement of dispute by the Parties. As the result, the Parties performed an offset of their claims and the balance was removed from escrow account in Buyer’s favour.

Proper involvement of Dmitriy Zagorodnyuk and Andrey Perepelitsa, experts from Interlegal, resulted in defense of the Client’s interests and decreased costs avoiding arbitration proceeding expences.