Goltsblat BLP wins dispute in favour of FG Wilson to include its claims on the ADD Group creditors’ register under an English law guarantee

08.10.2012

Goltsblat BLP has acted successfully in the court of the first instance for British firm FG Wilson, manufacturer of the globally renowned Perkins engines, in a dispute with Russia’s ADD Group (Please see the published court ruling here). Goltsblat BLP lawyers successfully gained inclusion of USD 6 million in claims on the ADD Group creditors’ register, under a guarantee regulated by English law and issued by ADD Engineering UK Limited (UK).

The guarantee secured performance of ADD Engineering UK Limited obligations to FG Wilson to pay for equipment supplied, even though the supply agreement between ADD Engineering UK Limited and FG Wilson was not signed in writing. The only proof of relations between the parties consisted of invoices issued to ADD Engineering UK Limited, and the equipment itself, which was immediately sent to third parties in Russia, including the ADD Group. The situation was further complicated FG Wilson not having a single document confirming goods delivery to Russia.

With the help of a subpoena and a private investigation agency, Goltsblat BLP took steps to obtain proof that the freight had been handed over and obtained from the Customs Ministry over 2000 pages of Freight Customs Declarations for all goods imported into Russia.

In court, lawyers also questioned Goltsblat BLP Partner Ian Ivory, head of the English Law and Corporate Finance Practice, as an expert. He clarified a number of provisions of English law for the Russian court, and explained why the guarantee was valid under English law, why the principal debt was deemed proven, and why the FG Wilson was not required to produce evidence of the freight being handed over in Russia.

The Goltsblat BLP lawyers who participated in case preparation were: Partner and Head of the English law and Corporate Finance Practice, Ian Ivory, and Senior Associate of the Dispute Resolution Practice, Dmitry Kletochkin, headed by Dispute Resolution Practice Partner Rustam Kurmaev.

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