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.