Ayhan Sezer Yag Ve Gida Endustrisi Ticaret Limited Sirket v Agroinvest SA

Ayhan Sezer Yag Ve Gida Endustrisi Ticaret Limited Sirket v Agroinvest SA

The correct date of default under the GAFTA contract is the date of the repudiatory breach (27 April 2018), not the date of acceptance of that breach. The advance payment/guarantee was not a non-refundable deposit; it is repayable to the Claimant unless and to the extent the Defendant proves loss. The Board erred in law on both issues.

Parties
Claimant: Ayhan Sezer Yag Ve Gida Endustrisi Ticaret Limited Sirket; Defendant: Agroinvest SA
Jurisdiction
England and Wales
Judgment Date
03 May 2024
Procedural Posture
Arbitration Claim (appeal From Arbitral Award) / Judgment on Appeal From Arbitral Award
Outcome
Appeal allowed in part
Legal Topics
Date of Default Under GAFTA Contract, Repudiatory Breach and Acceptance, Construction of Advance Payment/guarantee, Recoverability of Advance Payment, Assessment of Damages in Anticipatory Breach
Arbitration Contract Law Commercial Law Date of Default Under GAFTA Contract Repudiatory Breach and Acceptance Construction of Advance Payment/guarantee Recoverability of Advance Payment Assessment of Damages in Anticipatory Breach

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Parties

Ayhan Sezer Yag Ve Gida Endustrisi Ticaret Limited Sirket

Claimant

Agroinvest SA

Defendant

Procedural Posture

Arbitration Claim (appeal From Arbitral Award) / Judgment on Appeal From Arbitral Award

Legal Issues

  1. 1 What is the correct 'date of default' under clause 23(3) of GAFTA 100 in the context of anticipatory repudiatory breach?
  2. 2 Is the advance payment/guarantee under the contract non-refundable in the event of breach by the Claimant?

Ratio Decidendi

The correct date of default under the GAFTA contract is the date of the repudiatory breach (27 April 2018), not the date of acceptance of that breach. The advance payment/guarantee was not a non-refundable deposit; it is repayable to the Claimant unless and to the extent the Defendant proves loss. The Board erred in law on both issues.

Court Disposition

Appeal allowed in part

Orders

  • The date of default under the contract is 27 April 2018, not 7 May 2018.
  • The advance payment of US$494,500 is repayable to the Claimant unless and to the extent the Defendant proves loss.