Maritime arbitration: vessel grounding, constructive total loss, abandonment, unseaworthiness, inadmissibility of a review on the merits and much more...

Due to deteriorating weather conditions, the client's tugboat ran aground in a seaport. As a result, the vessel sustained serious damage leading to its constructive total loss. Subsequently, the client served a notice of abandonment on the insurer and demanded payment of insurance compensation. The insurer delayed the adjustment of the insurance loss and ultimately refused payment alleging that the vessel was unseaworthy. Following the insurer's refusal, the client filed a claim with the Maritime Arbitration Commission (MAC) at the Chamber of Commerce and Industry of the Russian Federation to recover the insurance indemnity and all expenses associated with the grounding.

KIAP Law Firm's lawyers participated in the negotiation process with the insurance company. Concurrently, surveyors were engaged to prepare reports on the constructive total loss of the vessel and the causes of the casualty. After the insurer's refusal to pay the insurance compensation KIAP Law Firm prepared the legal position for the case and provided legal assistance in managing the dispute before the MAC at the Chamber of Commerce and Industry of the Russian Federation. Subsequently, KIAP Law Firm's lawyers ensured the forced enforcement of the MAC award, winning a precedent-setting case before the Supreme Court of the Russian Federation and overturning the decisions of the lower courts which had initially refused to issue a writ of execution.

Participants:

Maria Krasnova, Alexander Kartashov, Karolina Tsmyg