KIAP lawyers successfully represented the client in ICAC arbitration and received arbitral award on recovery of contractual penalty in excess of 5 mln US dollars
Foreign supplier (client of KIAP) suffered damages due to the buyer's breach of its contractual obligation to purchase an obligatory minimum amount of goods. The underlying contract provided for contractual penalty in the amount of 50% of price of non-purchased goods; the amount of penalty exceeded 5 mln US dollars.
KIAP lawyers represented the client in arbitration in ICAC (Moscow) on recovery of the contractual penalty. Even though in such types of disputes the penalty amount is occasionally reduced by tribunals in accordance with the Russian law, in this case arbitral tribunal agreed with the arguments of KIAP and awarded the penalty in full. The arbitrators did not agree with the respondent’s submission that it was not liable for the non-purchase of the goods. The respondent’s request to reduce the penalty was also dismissed by arbitrators.
The interests of the Client in the arbitration proceedings were represented by Senior Associate Stepan Sultanov and Partner Anna Grishchenkova. Assistance was also provided by Head of practice Ilya Dedkovskiy, Associate Anton Kaminskiy, Junior Associate Diana Sattarova.