Client’s Victory: arbitration ordered the counterparty to pay €230,000
4 February, 2025
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Every detail matters when it comes to defending of the client’s financial interests. This case is a vivid example of how the coordinated work of experts helps to resolve complex international disputes in favor of the client.
Imagine the following situation: a company – member of a large holding (including companies from Ukraine, Bulgaria, etc.) entered into a complex international deal upon supply of 13 vehicles, to be payable via Letter of Credit. Anticipating difficulties in issuing promptly Letter of Credit by the Ukrainian company, the Bulgarian company, in turn, entered into guarantee agreement with the same counterparty on payment of the first installment regarding the above vehicles and made such payment. Therefore, the Bulgarian company partially secured fulfillment of the Ukrainian company’s obligations to the counterparty. Precondition for refunding guarantee payment was issuing Letter of Credit under the principal agreement. Since Letter of Credit was issued promptly, guarantee payments were deemed as refundable.
However, the counterparty decided to bend the rules and to save costs for paying further orders. Since there was no agreement thereon, the refund was blocked.
Interlegal law team promptly developed a strategy on the merits. We applied to the Istanbul Chamber of Commerce Arbitration and Mediation Center (ITOTAM), using Ukrainian and Turkish law competently.
With regards to vast experience of cooperation with our Turkish colleagues and legal support of non-standard cases for our clients worldwide, our team – partner Alexey Remeslo and junior lawyer Mariia Kalashnikova – successfully defended the Client’s interests.
Result: the arbitration court ordered the counterparty to refund guarantee payment in full and legal and arbitration costs, in aggregate amount of ca. 230,000 EUR.
Please contact Interlegal and we will defend your interests in any jurisdiction!