Success in GAFTA arbitration proceedings: $ 162,000 in favor of the Client
18 January, 2022
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Interlegal successfully completed GAFTA arbitration proceedings. The dispute arose due to improper fulfillment of obligations under Sale & Purchase Contract and the Client’s premature default.
The Client – a Spanish company engaged in agricultural product trading – applied to Interlegal. The Client and its counteragent entered into Trade Contract on barley supply under CIFFO terms, governed by English law. One of its essential terms provided for Certificate and Analytical Report on absence of dioxin in the goods.
After signing the Contract, the Buyer decided to reject its obligations and proposed to pay forfeit for the Client, in the amount non-proportional to the Client’s actual losses in case of the Contract termination. But the Client rejected such proposal and still fulfilled its obligations upon the goods supply. In turn, the counteragent terminated the Contract unlawfully, with reference to the fat that neither Certificate nor Report met the Contract provisions.
The Client had no choice but to apply to GAFTA arbitration for damage recovery from the Buyer.
Interlegal lawyers developed the Client’s legal position and duly provided to the Arbitration all the required facts and evidence in favor of the Client. Finally, Arbitration supported our arguments and issued an award in favor of our Client, having satisfied the claim on damage recovery from the Buyer amounting to 162,000 USD.
Interlegal associate attorney Igor Kostov, lawyer Ganna Domuschi and junior lawyer Kyrylo Sudnyk led the case.
