The dispute arose out of the two CIF contracts under which our Client had to ship the corn for a total value of more than USD 3,000,000.00.

While the goods were delivered and discharged to the Buyers without issue, a dispute over demurrage costs soon emerged. Despite initially acknowledging the demurrage sums incurred, the Buyers ultimately began avoiding the payment for demurrage, leaving the Clients with no choice but to initiate arbitration proceedings.

The case involved unique complexities, as the Buyers’ parent company had served as a Guarantor under both contracts. However, the Guarantor—registered in Egypt—contested jurisdiction before the Tribunal, arguing that merely being mentioned in the contracts did not bind them to the arbitration clause, especially since the contracts were not signed by the Guarantor.

Drawing on English case law and a thorough examination of the factual circumstances, the AGA Partners team successfully demonstrated that the guarantor shared the same commitments as the Buyers in terms of their liability under the contracts. The Arbitrator upheld this position, affirming the Guarantor’s liability alongside the Buyers.

As a result, AGA Partners secured an arbitral award against both companies, ensuring the Clients’ rights were fully protected and enabling the successful enforcement of the award.

The AGA Partners’ team was represented by partner Ivan Kasynyuk together with the senior associate Yurii Bedenko and associate Maksym Fesenko.