Legrant defends the interests of its' client in the GAFTA arbitration

July 12, 2018 · News

A foreign agro trader applied to Legrant regarding the dispute with its' counterparty. According to the contract Legrant's client acted as a seller and delivered 55,000 tons of wheat to the buyer on FOB Odessa terms.

Loading was carried out by the terminal, as well as by transshipment of cargo from another vessel. The contract stated that the quality of the goods was final according to the certificate of the surveyor appointed by the seller. However, the captain of the vessel suspended loading many times due to the fact that, in his opinion, the cargo visually seemed damaged. The captain resumed loading only after surveyors' arriving on the vessel and contractual certifying of the quality of the cargo. Despite the fact that the quality of the cargo was confirmed by several surveyors, the captain, for the same reasons, refused to take on board part of the cargo from the second vessel.

The buyer, in turn, supported the position of the captain. As a result, the seller suffered losses associated with unloading of the unsuitable goods to the terminal, paying additional port fees, loss of dispatch and survey costs. The total amount of losses was about 100 thousand US dollars.

Having analyzed situation, lawyers of Legrant filed a lawsuit to GAFTA arbitration for the enforcement of all damages from the buyer. At the moment, the arbitration continues proceedings.

The client’s interests in GAFTA arbitration are represented by Legrant senior associate Danil Hristich and managing partner Tatyana Titarenko.