IY LEGAL has recently won an ICC Arbitration for a coal trading client. The case involved the sale of 4 large coal shipments from Columbia to Peru over 24 months, with the Buyer failing to take delivery of the last 2 shipments, in circumstances where the market price of coal had dropped significantly compared to the contract price, during the shipment periods. The Buyer argued that each shipment was a separate transaction, such that it never became bound to purchase or take delivery of the final two shipments (by then at well above the prevailing price of coal). Our client, the Seller, argued that the 4 shipments were a single ‘package deal’, subject to a single agreement and price.
The case was further complicated by a challenge to the ICC’s jurisdiction by the Buyer, a contest over the law applicable to the contract, and precisely which contract terms applied?
After we successfully established ICC jurisdiction and the contract terms, the Tribunal accepted the Seller’s case on which contract terms applied, proper law and, centrally, that the Buyer was obliged to purchase all 4 shipments of coal and was, therefore, in breach of contract and liable to pay the Seller damages.
If you would like more information on this area of the law, please contact Andrew Iyer on: +44 207 1007714, or by email to: firstname.lastname@example.org.