Legrant has successfully protected the interests of the Ukrainian grain trader in the GAFTA arbitrationSeptember 17, 2020 · News
Legrant has won the case in GAFTA arbitration in excess of 250 000 USD. The relevant sum was not paid to the Ukrainian grain trader for the duly delivered cargo.
The contract on the delivery of the wheat was concluded by our Clients on the DAP Incoterms 2010 terms. The relevant agreement was governed by the English law and incorporated GAFTA 78 proforma. Pursuant to such terms the partial delivery of the goods was stipulated and each delivery should be deemed as a separate contract.
The Clients, being the Sellers, were forced to withhold deliveries after the Buyers have refused to pay for already delivered a half of the contract amount of wheat. On the other hand, the Buyers asserted on that in accordance with GAFTA 78 each delivery should be performed and paid as a separate contract, therefore the non-payment for one delivery shouldn`t be the ground for withholding of the following ones. Besides, they demanded to set-off the debt in total amount of 250 000 USD arose out of the third-party agreement.
Having analyzed the case matters and English court`s practice, the lawyers developed the legal position in order to prove the legitimacy of the Client`s actions. The arbitration tribunal accepted the Clients` arguments and upheld the relevant claim in full.
“We represent our Clients` interests either in Ukraine or in the international commercial arbitration due to our knowledges and experience. Resolution of the comprehensive issues related to the international trade strengthens the competitive position of our country and provides the new opportunities for the business.” – Tatyana Titarenko, the managing partner, explains.