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Cobzac & Partners Successful for Latvian Client in Challenge of Moldovan Arbitration Award

Cobzac & Partners Successful for Latvian Client in Challenge of Moldovan Arbitration Award

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Cobzac & Partners has successfully represented Latvia's SIA Fertco fertilizer distributor in its attempt to obtain the partial annulment of an arbitral award in Moldova's courts.

According to Cobzac & Partners, Fertco entered into a USD 2 million contract to sell fertilizer to an unnamed Moldovan company. According to the firm, "due to prolonged delays in payment, SIA Fertco notified the buyer that it was suspending the delivery of the goods until [it received] full payment for the goods already delivered. After that, SIA Fertco filed a ... claim with the International Commercial Arbitration Court at the Chamber of Commerce and Industry of the Republic of Moldova, request[ing] the collection of the debt in a total amount of about EUR 1,060,200. In the arbitration proceedings, the defendant filed a counterclaim requesting the collection of damages from SIA Fertco due to the suspension of delivery of the goods, amounting to EUR 1,336,639."

According to Cobzac & Partners, "surprisingly, the Court of Arbitration satisfied partially the claim of our client and the counterclaim of the Moldovan company and finally, ruled that SIA Fertco had to pay an amount of EUR 624,202 in damages."

With the assistance of Cobzac & Partners, Fertco then challenged the award in the Moldovan courts, claiming "both a violation of the arbitration procedure and a violation of the legal order of the Republic of Moldova and of principles and good morals." Ultimately, the firm reported, "although the first instance court rejected the request for annulment of the arbitral award, by Decision of the Chisinau Court of Appeal of April 22, 2021 the appeal declared by SIA Fertco was fully satisfied and the arbitral award was annulled in the part in which the claims of SIA Fertco were rejected and in the part in which the claims of the local company were admitted."

According to the firm, "the case was not an ordinary one because it was about an arbitral award issued by an arbitration tribunal and the local judicial courts could overturn it only in case of serious errors that infringed the principles of civil law. The ruling issued by the Chisinau Court of Appeal creates a precedent that the local arbitration courts will have to take account of in the future."   

Cobzac & Partners' team was led by Managing Partner Daniel Cobzac and included Senior Associate Pavel Digori and Associate Alina Gaja. The team was also assisted by independent attorney Gheorghe Sclifos.

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ACI Partners is a leading law firm in Moldova with an expanding network of partners throughout Europe. ACI Partners was established in 2006 and since then has managed to build a very strong and competitive legal practice. Our business strategy strives to deliver a solid and reliable service, going beyond merely grasping the law, which the clients may turn to whenever they need. In reaching this goal, ACI Partners employs a personalized approach to each client, showing a genuine respect for their values and unqualified commitment to their interests and needs, steadily investing in knowledge and data management and ensuring a working environment consistent with our clients’ quality demands and high expectations.

ACI Partners is a one-stop shop law firm proficient in all possible legal matters a business might come across in Moldova, starting with incorporation of a business, and obtaining of all the necessary regulatory permits, continuing with various daily matters, such as contracts, labor, and migration, and finishing with dispute settlement, insolvencies, and criminal investigations. But we pride ourselves especially for our unmatched expertise in most innovative and complex areas for Moldova, as Modern Financial Products, Data Protection, Renewable Energy, Competition, Clinical Studies, Public Procurement, and Regulatory. In our work, we always involve a team of professionals with the relevant skill-mix, which enables us to provide our clients with an integrated and comprehensive advice, superior to our competitors.

ACI Partners has advised the Government of the Republic of Moldova, businesses, international organizations, and other institutions on most challenging transactions, assignments and projects.

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