AGA Partners team has secured another victory for its Client in international commercial arbitration in London involving five contracts for the supply of Ukrainian sunflower and soybean oil to a Polish buyer. 

After receiving the Goods, which were delivered by rail wagons to the Ukrainian-Polish border, the Buyer refused to pay the full price, citing allegedly poor quality and noncompliance with European food safety regulations.Polish border, the compliance with European food safety regulations. 

In the course the arbitration proceedings, AGA Partners’ specialists presented compelling arguments that the Buyers’ claims regarding alleged nonconformity of the Goods were unfounded and inconsistent with the terms of the contracts and the EUestablished food safety regulations. Besides, AGA Partners applied the time bar argument against the Buyers’ quality counterclaim. 

As a result, the arbitrators issued an award in favour of AGA Partners’ Client, ordering the Buyers to pay the full value of the Goods as well as compound interest for late payment under the contracts. 

AGA Partners experts emphasize that the procedure for resolving quality disputes is subject to a special regime under the relevant arbitration rules. The limitation period for claims related to quality claims is shorter compared to other types of disputes. Therefore, delaying the initiation of arbitration and filing a claim may result in the dismissal of quality relateddemands.related demands. 

Thus, the limitation period for filing a quality claim may be short. It is therefore necessary to always check the applicable version of the arbitration rules to understand what limitation periods apply to the relevant quality claim. 

This arbitration victory was achieved through the efforts of partner Iryna Moroz and associate Vasyl Radetskyi.