AVELLUM successfully represents international inspection company in ICAC arbitration

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AVELLUM secured a favourable
award for the client in the International Commercial Arbitration Court at the
Ukrainian Chamber of Commerce and Industry (“ICAC”) for a
total amount of almost USD200,000.

AVELLUM represented a major
international inspection company (“Surveyor”) in a dispute
against a global oil trading company, which refused to pay for the Surveyor’s
services. The claim concerned a debt collection for the provided services.
However, it was further complicated by the counterclaim on the scope of the
Surveyor’s obligations and the proper provision of its services.

In particular, the respondent
raised arguments on improper sampling and the Surveyor’s liability for
unsatisfactory cargo quality, claiming around USD200,000.

AVELLUM’s partner Iryna Moroz
commented the following: “Indisputably, surveyors cannot be held liable for
the quality of the cargo. The scope of the surveyor’s obligations is limited to
the inspection of the cargo’s quality at loading in accordance with the
client’s instructions and the issuance of corresponding quality certificates.
Should the tribunal favour the respondent’s position, it would set up a dangerous
precedent for surveyors companies and the inspection services market. We are
certain that the success of the counterclaim would leave the agricultural
market in uncertainty as to the limits of liability of inspection companies
.”

Nevertheless, during the
written submissions exchange stage and oral hearings our team proved that the
Surveyor cannot be held liable for the inappropriate quality of the cargo
delivered by the shipper, if the Surveyor’s obligations were duly performed. As
a result, the tribunal dismissed the counterclaim and satisfied our client’s
demands.

The AVELLUM team
was led by partner Iryna Moroz, with support from senior associate Iurii
Gulevatyi.

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