General average dispute settlement by Interlegal
28 July, 2021
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General average dispute settlement by Interlegal
During cargo transportation by sea from Ukraine to Tunisia, the vessel main engine got broken; therefore, the Shipowner declared on general average and charged from the Charterer (cargo owner) expenses incurred due to towage and vessel repair. Average adjuster calculated the deposit payable by the Client in the amount of ca. 125,000 USD.
Interlegal lawyers represented the Charterer’s interests in dispute settlement. Having held negotiations with the Shipowner and the Client’s cargo insurer, they entered into amicable agreement, whereunder the Client paid in favor of the Shipowner less than half of the aforesaid sum. Following general average claim settlement, the vessel called at destination port, with undamaged cargo on board being delivered to the Consignee.
Essential term was that the Shipowner, having paid the settlement amount, should reserve the right on such cost reimbursement by insurance company. So, negotiations were aimed at satisfying all the Parties’ interests in full.
Now, all the contractual obligations have been fulfilled, while insurance company obtained all the documents and evidence required for cost reimbursement in favor of the Client, without longstanding court proceedings upon general average cost distribution.
Interlegal lawyer Mykola Kozachenko, managed by Interlegal partner Alexey Remeslo, led the case.
