ICAC at the UCCI award on charging ca. 2,000,000 USD

Interlegal law team defended interests of the Client – large international trade company – in the International Commercial Arbitration Court at the Ukrainian Chamber of Commerce and Industry.

Our Client met all terms and conditions of the Supply Contract and delivered sunflower cakes to the Buyer. But the latter failed to pay full cost under the Contract; therefore, the Seller filed a claim to the ICAC at the UCCI on debt recovery amounting to ca. 2,000,000 USD, including cost of the goods and penalties.

At first sight, it is quite a typical dispute of international trade, but it has some nuances.

First, sending scanned copies of the documents:

Despite the goods supply within the agreed term, our Client made a mistake with regards to sending scanned copies of the documents.

Interlegal lawyers justified in the framework of arbitration proceedings that such circumstances impact neither the Buyer’s obligations nor the penalty calculation procedure.

Next, what about substantial law?

It was non-standard governing law in respect of relations between the Parties. They agreed that this Contract should be governed by the UN international law regarding sale & purchase international treated.

Arbitration court had some questions regarding national law applicable in dispute settlement, since the UN conventions do not govern all the aspects of relations between the Seller and the Buyer. We determined substantial law as governing relations between the Parties to the full extent and defending our Client’s interests.

Last but not the least, penalties!

This Contract prescribed two types – fine and penalty – in aggregate exceeding cost of the goods. Arbitration courts usually disagree with such large amounts of penalties, despite the fact that such penalties are set forth in the Contract while substantial law has no restrictions concerning the penalty amount. Our lawyers struggled for the Client’s position and finally facilitated the fair arbitration awards.

Interlegal lawyers & attorneys-at-law Nikita Kocherba and Olesya Ivanova, managed by associated partner Karyna Gorovaya, facilitated for the Client a positive ICAC at the UCCI award on debt recovery amounting to ca. 2,000,000 USD.