Two largest European traders had a dispute that arose out of a contract for wholesale supply of barley, crop 2013, FOB Burgas (Bulgaria). The seller and buyer had a disagreement in the interpretation of contract terms of payment CAD (cash against documents). Because of this controversy, the seller refused to load the vessel, and the buyer declared the default of fulfilment of the contract by the seller and subsequently re-routed the vessel to another port for purchase of barley under the replacement contract.
In November 2013, the buyer initiated arbitration proceedings according to GAFTA No. 125 Arbitration rules; the seller filed a counterclaim. The First Tier GAFTA Arbitration award dismissed the buyer’s claim for damages for the sum of more than 700 000 Euro, and the seller’s counterclaim was satisfied in terms of recovery of direct damages worth 250 000 Euro.
In April 2015, the buyer appealed the first tier award. Jurline lawyers were engaged to accompany the case on the side of the buyer at the stage of review of the case by the Appeal Board of GAFTA. Following the results of the successful procedural and negotiation work conducted by lawyers, the dispute has been fully settled by the parties by signing the settlement agreement.
The case was accompanied by lawyers Pavel Bogachenko, Daria Minchenko under the leadership of partners Vitaliy Cherkes and Vladimir Zubar.