LEGRANT has obtained the WFO and arrested the sums on the value of 500 000 USDJune 25, 2019 · News
LEGRANT’S client – a large foreign trader – acted as Seller of agricultural commodities on FOB terms. The Contract has also provided for CAD payment, and incorporated Gafta 49 proforma.
The Seller delivered the cargo on the vessel and presented shipping documents to the Buyer’s bank. However, the payment was not performed. It further emerged that the Buyer fraudulently obtained the originals of the documents and was trying to resell the cargo to third parties without notifying the Seller and covering any sums due.
In order to prevent the Buyers from concealment of assets, LEGRANT’S lawyers, jointly with their foreign partners, applied to the High Court of Justice of England and Wales for worldwide freezing order (WFO). As a result, the court obliged the Buyers to disclose the assets as well as not to dispose any of its assets on the value of 500 000 USD. Immediately upon obtaining of the WFO, LEGRANT’S lawyers filed the claim to Gafta for reimbursement the of Seller’s damages. At the time, the claim is being considering in Gafta.
Reference: WFO is an interim measure that helps to disclose the assets worldwide and restrain the person from asset’s dissipation. In case the contract provides for the seat of arbitration in England, the order is issued by the High Court of Justice of England and Wales. The order may be obtained prior to commencement of the arbitration, without notifying the Respondents about the hearings. In case the order is not complied with, the directors and other affiliated persons may be brought to justice and imprisoned. Therefore, WFO allows to freeze the assets before the Respondent manages to hide them.