Legrant has proved in the court the client`s right for discount on the vessel calls

March 30, 2020 · News

Legrant's lawyers successfully challenged the unlawful refusal of USPA to apply a discount on administrative and tonnage dues when vessel enters several Ukrainian ports in succession.

The application of discount on the port dues is regulated by the order of Ministry of Infrastructure №316 of 27 May 2013.

The Order stipulates that foreign-going vessels which enter two or more sea ports in succession, pay only:

  • 50% of tonnage dues in each sea port (75% in case of more than two ports);
  • administrative due – only in the first sea port.

Non-application of the aforementioned discounts gave rise for the large ship agent to apply to Legrant. The added complication was that the disbursement invoices were issued by several departments of USPA for a different period and concerned different vessels.The lawyers filed a joint claim to recover excessive amounts of port dues from USPA.

Initially, the court returned the claim alleging that each vessels call should be considered in a separate proceeding. Nevertheless, Legrant lawyers appealed the court order, having proved that such claims should be considered in a single proceeding.

Further on, after the commencement of the proceedings, USPA via its departments filed several reply submissions whereas declared various positions. Legrant team drew particular attention on the contradictive positions of USPA regarding the territorial affiliation of the terminals to the port and presented a number of further substantive arguments.

The court accepted Legrant’s position and granted the claim in full. As a result, Legrant recovered more than 30 000 USD in favor of the client. Moreover, ship agents right to act as claimant in the cases on reimbursement of the excessively paid sums of the port dues was confirmed by the court once again.

The case was supported by Legrant’s Senior lawyer Liudmila Sizonenko and lawyer Sergey Platonov, under the overall supervision of the Managing Partner Tatyana Titarenko.