AGA Partners successfully represented a Ukrainian state-owned company in a dispute with a Swiss company in arbitration. The dispute arose based on USD2 million contracts for the supply of commodities.
For several months, our client had been shipping goods to various countries, including Tunisia, Morocco, Egypt, Philippines, and Bangladesh, in accordance with the buyer’s instructions. The buyer received all the goods but did not pay the full price for the goods shipped.
The case was quite complicated since the Swiss buyer was not the ultimate recipient. Accordingly, all the goods delivered under the contracts to the Swiss company were actually delivered to other companies specified as ultimate recipients in the shipping documents.
When establishing whether the goods were actually delivered under a particular contract, arbitrators pay particular attention to the wording of shipping documents. Through numerous evidence, we were able to prove in arbitration that despite the wording of the shipping documents, the goods were actually delivered under contracts concluded with a Swiss buyer, who is obliged to pay the full price.
After several months of proceedings, the arbitrator fully satisfied our client’s claim covering a total of more than USD1.7 million.