NEWS (January 23, 2019)

AVELLUM represented client’s interests in GAFTA arbitration

AVELLUM represented the client's interests in GAFTA arbitration in the dispute with a Swiss trading company.As the result of 8 months long arbitral proceedings, the tribunal satisfied demands of our client in full, for a total amount of over USD200,000.

The key complexity of this case lied in proving the tribunal’s approach towards calculating the amount of damages. This had a direct influence on the commercial component and compensation, which fluctuated between USD50,000 and 200,000.

The worst case scenario favours the defendant and could result in a minimum amount awarded to the client. This would happen if the arbitrator calculated the damages according to the general rule – on the day after expiration of the delivery period under the contract.

The defendant also provided alternative calculation models, which were dissatisfactory to the firm`s client.

Fortunately, Avellumteam was able to persuade the tribunal that an on-going negotiations between the parties, despite the formal expiration of the contract, allow to deviate from the general calculations rule and extend the term, which directly affects the increase of damages.

Eventually, the arbitrator satisfied the maximum possible amount in client's favour by considering all the special aspects of the case.

The AVELLUM team was led by partners Iryna Moroz and Ivan Kasynyuk, with support from associates Dmitry Koval and ViktoriiaTolochko.

 

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