AGA Partners have successfully obtained the court order for an arrest of a vessel berthed in the Izmail seaport (Ukraine) to secure the maritime claim of the consignee against the shipowner.

The claim arose from the contamination of the cargo (diesel fuel) with water caused by a technical malfunction of the vessel. A part of the cargo was spoiled completely, while another part was sold by a consignee with a significant discount because of its non-contractual quality. The consignee also suffered losses because of the need to pay for the storage and disposal of the spoiled cargo.

The shipowners failed to restore the vessel's seaworthiness and demonstrated uncooperative conduct, ultimately refusing to compensate for the damage. At the same time, because of the vessel's technical malfunction, the discharge was significantly delayed, causing additional losses to the consignee.

In these circumstances, the consignee was left with no choice but to commence legal proceedings against the shipowners and apply for the vessel’s arrest to secure his claim.

Ukrainian court, having considered an arrest application prepared by AGA Partners, granted the vessel's arrest.

Ivan Kasynyuk, partner, comments: “Imposing an arrest on a sea vessel is an effective means of protecting the interests of charterers, consignees and cargo owners, as it allows to significantly strengthen the negotiating position in disputes with shipowners. Spoilage of the cargo due to a technical malfunction of the vessel or negligence of its crew is a sufficient basis for the occurrence of a maritime claim and, accordingly, arresting the vessel.”

The AGA Partners’ team was represented by partners Ivan Kasynyuk and Iryna Moroz, counsel Pavlo Lebediev, senior associate Yurii Bedenko and associate Viktor Pasichnyk.