24/7

Arbitration practice: in the process of GAFTA arbitration proceedings Interlegal reduced essentially the amount claimed by counteragents

23 августа 2017 г.: ru 2 12 декабря 2017 г.: ru 2 16 мая : ru 1 всего: 15 03.02.15

The dispute arose from the breach of Sales and Purchase Contracts by the Sellers – non-resident companies. The Sales and Purchase Contracts for 20,000 tons of corn were concluded with the Swiss trading company in November 2013. The Ukrainian company acted as a guarantor of performance the contracts.

 

During performance of the contracts, on the 28th of February the Sellers notified the Buyer that due to difficult situation in Ukraine they were unable to perform their contractual obligations to supply the goods in the contracted amount.

 

On the 4th of April 2014 the English law firm which represented the Seller’s interests under both contracts announced them in default and initiated the arbitration proceedings where the Ukrainian company acted as the co-Defendant. The Buyer claimed the default price of goods from the Sellers (as of the 4th of April), namely 420,000 USD, under both contracts. The Sellers denied such claims and instructed the lawyers from Interlegal.

 

During arbitration proceedings, the experts from Interlegal proved that calculation of default price (as of the 4th of April) contradicts to the principle of justice and that the fair date of default should be the 28th of February, i.e. the day when the Sellers announced about their incapability to perform the contracts. Recalculated default cost (as of the 28th of February) made up 250,000 USD under both contracts.

Arbitration agreed with arguments presented by the Defendant’s lawyers and charged the sum almost twice less than the claimed amount.

 

Dmitriy Zagorodnyuk and Alexey Remeslo, the senior lawyers, and Ilona Bilyuk, the lawyer, under general supervision of Artem Skorobogatov, the associated partner, worked upon the cases.

  • Interlegal lawyers consulted the client upon applying the instrument of agrarian receipts2020.05.20

    The Client – large foreign investment fund filed a request to Interlegal regarding mechanisms upon securing fulfillment of the Debtor’s obli...

    show more
  • Interlegal drafted new combined service agreement on cargo handling2020.05.18

    The Client – large Ukrainian sea port operator engaged, in particular, in rendering services of export & import operations, as well as l...

    show more
  • CFC or not CFC: that is the question2020.05.15

      The Client applied to Interlegal for legal advice upon legal effects due to entry into force of the draft law No. 1210 “On amendme...

    show more
  • Interlegal lawyers won GAFTA arbitration case in the amount of 200,000 USD2020.05.13

    Interlegal succeeded in GAFTA arbitration settlement of the dispute, due to the Buyer’s failure to pay for wheat flour supplied on CFR terms...

    show more
  • Interlegal lawyers consulted the Client and the Bank regarding application of thin capitalization rules2020.05.08

    The client filed a request to Interlegal concerning bank issues. A foreign bank maintaining the Client’s corporate account demanded for expl...

    show more
  • Unified social tax late payment: legal effects2020.04.21

    The Client applied to Interlegal upon unified social tax erroneous remittance to the account of State Tax Inspection (STI) in the correspond...

    show more
  • Business making under Ukrainian business environment2020.04.09

    A foreign client applied to Interlegal for making business in Ukraine. Its request covered the following services: registration of the Ukrai...

    show more
  • Changing the flag for the pleasure yacht2020.04.07

    The client applied to Interlegal on changing the flag for the pleasure sailing yacht 30 meters long. The need to change the flag was caus...

    show more
  • Interlegal lawyers charged losses due to vessel non-delivery for loading2020.04.07

    Charterer under Voyage Charter Party applied to Interlegal on damage recovery from the Shipowner due to vessel non-delivery for loading....

    show more
  • Reorganization of the foreign company’s representative office2020.04.01

    A foreign Client – owner of the group of companies engaged in supply of grains and oilseeds in Black Sea Region – applied to Interlegal. In...

    show more