Arzinger defended the client in an appeal against a claim amounting to UAH 396 million
Arzinger’s Commercial Disputes practice has achieved a positive result for the client, one of the largest dealers of the global agricultural machinery manufacturer John Deer in Ukraine, in a dispute with one of the large agricultural holdings regarding the fulfillment of the agricultural machinery supply agreement. The total amount of claims against the client amounted to UAH 396 million, which included an unprecedented UAH 260 million in penalties.
This litigation is an interesting application of force majeure rules under martial law, as Arzinger’s attorneys have developed and successfully implemented a strategy to protect the client’s interests with a combination of elements:
▪️ pre-trial preparation, including an assessment of the development and outcome of a possible dispute with the possibility of filing a counterclaim;
▪️ confirmation of force majeure after the events that give rise to it;
▪️ proving the client’s right to unilaterally withdraw from the agreement in the event of force majeure that lasted for the period specified in the agreement;
▪️ confirmation of the good faith of the client’s actions in the performance of the disputed contract in the face of uncertainty and risks of martial law;
▪️ proving the disproportionality of the penalties imposed on the client, which could have led to unjust enrichment of the plaintiff.
The successful strategy of judicial defense of the client was implemented by Counsel, Candidate of Law Evgen Diadiuk and Senior Associate Iryna Hutnik.