Legrant has won a case in GAFTA arbitrationJune 18, 2018 · News
Legrant successfully represented interests of it's client – a foreign agro trader, in GAFTA arbitration (The Grain and Feed Trade Association).
The dispute concerned the sale and purchase contract of chickpea with loading into containers on FOB Novorossiysk terms. The client of Legrant was a Buyer under the contract and made a partial prepayment for the goods. However, along of storm weather at the port, the Parties weren`t able to perform their obligations concerning the supply of the cargo and presentation of the vessel. The Seller refused to extend the delivery period to a later date, and also didn`t reimburse the prepayment to the Buyer, justifying this by alleged consequent damages.
The lawyers of Legrant submitted a claim to the GAFTA arbitration, where they reasoned the obligation of the Seller to reimburse the whole amount of prepayment. In the meantime, the Seller submitted a counterclaim on damages recovery. Having analyzed the submissions of the Parties, the Arbitration allowed the most of the Buyer’s claims, including the entire prepayment reimbursement with applicable interest, and also dismissed the counterclaim of the Seller. The total amount of reimbursement was around 60 000 US dollars.