AGA Partners successfully represented large agricultural holding in London arbitrations. The disputes arose under contracts for sale of commodities for a total value of more than USD2 million.
The respondent refused to supply to our client about 12,000 metric tons of Ukrainian corn due to unsettled disputes existing under other contracts concluded between the parties previously, claiming that he has a right of lien until all issues under previous contracts are settled.
After half-year of proceedings, the arbitral tribunals found that the respondent was not entitled to exercise lien and fully satisfied our client’s claims in both disputes awarding more than USD1,1 million of damages plus arbitration fees and expenses.
Partner Iryna Moroz commented on this situation:
“Indeed, under English law, in some cases seller may be entitled to withhold further delivery of goods under the contract if a buyer fails to pay for the goods already delivered under the same contract. However, a seller shall not exercise this right, if alleged debt arises under a separate contract.
The main issue of these disputes was to determine whether all the contracts between the companies were concluded within one single transaction. Our team has managed to prove that each contract between the companies is a separate independent agreement and is a subject to separate arbitration proceedings.”
The AGA Partners’ team was led by partners Iryna Moroz and Ivan Kasynyuk, senior associate Dmytro Koval, and associate Dmytro Izotov.