Our Dispute Resolution team successfully represented a client in a court case concerning the recognition and enforcement of a GAFTA (The Grain and Feed Trade Association of London) arbitration award in Latvia.
Arbitral award
The client had delivered goods under a contract, but the defendant had only partially settled the payment, remaining in debt for EUR 5.5 million. The parties could not resolve their claims and disputes by negotiation, so the client submitted the claim to the GAFTA Arbitration Court, which satisfied the claim. The respondent did not voluntarily comply with the award, so the client applied to a Latvian court for recognition and enforcement of the arbitral award in Latvia.
The court’s decision
Although the defendant initially admitted the claim, it changed its position six months later, claiming that the parties had reached an amicable settlement and that the client had withdrawn the claim. The court found the defendant’s explanations unfounded, agreeing with the client’s arguments that neither the settlement nor the withdrawal agreement related to this case. The defendant also argued that the claim should not be upheld as it would conflict with the defendant’s insolvency proceedings in Lithuania. Our team proved that none of the circumstances set out in Article 5 of the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards, which could constitute grounds for refusing recognition and enforcement of an arbitral award in Latvia, had been met.
Our team
The case was handled by partner Valts Nerets, senior associate Agita Sprūde, associate Elvis Grinbergs and assistant lawyer Paula Šūtava.
