Advocates Bureau Yug Successfully Defended a Major Russian Supplier of Agriculture Seeds Against Unreasonable Claims of the Buyer

12.02.22

Advocates Bureau Yug Successfully Defended a Major Russian Supplier of Agriculture Seeds Against Unreasonable Claims of the Buyer

The ABYs client, a major Russian supplier of agriculture seeds, made a shipment of winter rye to a buyer – the farmer from the Bryansk region. The farmer sowed it, but the rye did not rise well. The farmer got an expert examination at the Bryansk State Agrarian University that the poor germination was caused by discrepancy between GOST standards and the seeds supplied. Therefore, the buyer filed a claim against ABYs client to recover loss of 101.000.000 RUB due to poor quality of the seed supplied.

Loss includes costs of sowing and loss of profit, i.e. the profit that the buyer failed to gain due to poor quality of the seed supplied. The client filed counterclaim against the buyer to recover the debt on payment of the disputed seeds and a loan for the use of funds in the amount of 15.000.000 RUB.

The Krasnodar Region Commercial Court satisfied the farmers claim fully and dismissed the clients counterclaim.

ABYs lawyers took on the case after the Court had made a decision. We analyzed the case and prepared an appeal claim. We pointed out that the Krasnodar Region Commercial Court had no proofs of poor quality of the seed supplied, since Rosselkhoznadzor conducted two inspections and confirmed that the seeds comply with GOST standards. Thus, the Court had no reasons to believe the pre-trial examination, as it was not actually carried out, and the quality claim was filed beyond the contracts time limit, and the farmer provided no proof of losss amount and violated rules for its calculation.

The 15th Commercial Appeal court agreed with ABYs arguments, canceled the previous decision. Dismissed the buyers claim and satisfied the clients counterclaim fully.

The clients interests were represented by ABYs Senior Associate Sergey Radchenko.

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