International Arbitration: Non-Delivery of Goods

Our client, a Ukrainian company, faced a dispute arising from the non-delivery of 17 tons of rice by a Dutch company under a foreign trade contract. As the goods did not enter Ukraine, the Ukrainian company had to pay a penalty under Ukrainian foreign economic legislation.

The contract stipulated international arbitration in Ukraine as the dispute resolution mechanism.

Outcome

After a thorough analysis of the contract, applicable law, and preparation of the arbitration case, the dispute was submitted to international arbitration.

The arbitration tribunal ruled entirely in favor of the Ukrainian company:

• the Dutch company was held liable for non-delivery;
• the Ukrainian company was reimbursed for penalties and incurred costs;
• the client’s contractual rights were fully restored.