Limited Liability Company “Holz Vertriebs Zentrum Siegburg GmbH” v. Harhur Finher Joint LLC

At a glance

Parties

Holz Vertriebs Zentrum Siegburg GmbH (Germany) v. Harhur Finher Joint LLC (TOV «Гаргур Фінгер Джоінт», Ukraine)

Case no.

Kyiv Court of Appeal, case No. 824/14/2019, proceeding No. 2-k/824/25/2019

Court

Kyiv Court of Appeal (Київський апеляційний суд), presiding judge O.I. Shkorina

Underlying award(s)

Award of the International Commercial Arbitration Court at the Ukrainian Chamber of Commerce and Industry (ICAC), case AC No. 55/2018, 20 September 2018, by a sole arbitrator

Forum and rules

Application for recognition and enforcement under the Ukrainian Code of Civil Procedure, the Law of Ukraine "On International Commercial Arbitration" and the New York Convention

Treaty

New York Convention 1958 (Articles III and V); arbitration clause in Section 14 of supply contract No. 8/2016

Sector

Supply of goods (timber trade)

Outcome

Application granted. The court recognised the award, permitted its enforcement and ordered a writ of execution to be issued.

Amount

Award enforced: EUR 28,198.04 (price paid for goods not delivered), EUR 1,000 (legal costs) and EUR 3,320.39 (arbitration fee), total EUR 32,518.43. Court fee of UAH 960.50 charged to the debtor.

The dispute

Holz Vertriebs Zentrum Siegburg GmbH, a German buyer based in Siegburg, signed supply contract No. 8/2016 with the Ukrainian seller Harhur Finher Joint LLC on 10 June 2016. The contract was governed by Ukrainian law. Section 14 sent disputes to the ICAC at the Ukrainian Chamber of Commerce and Industry, before a sole arbitrator, with the seat in Kyiv or Zhytomyr. The seller did not perform, and the buyer brought a claim before the ICAC. The ICAC, sitting with a sole arbitrator appointed by the President of the Chamber, terminated the contract on 20 September 2018 and awarded the buyer EUR 32,518.43. The debtor neither challenged nor paid the award, so the buyer applied to the Kyiv Court of Appeal on 4 February 2019 for recognition and permission to enforce. The debtor did not appear at the hearing.

Key holdings

1. Under Article III of the New York Convention, the court must recognise the award as binding and enforce it under Ukrainian procedural rules. For an award made with the seat of arbitration in Ukraine, Article 482(1) of the Code of Civil Procedure applies. p. 3
2. No ground for refusal under Article V of the New York Convention, Article 36(1) of the Law on International Commercial Arbitration or Article 478 of the Code of Civil Procedure applied. Nothing showed that a party lacked capacity or that the arbitration agreement was invalid. The dispute fell within Section 14 of the contract. The composition of the tribunal and the procedure followed the parties' agreement. The award was binding and had not been set aside or suspended. p. 4
3. The debtor had proper notice. It was invited to agree on the arbitrator, proposed no candidate, and the arbitrator was then appointed according to law. It filed a statement of defence but did not attend the hearing. p. 4
4. The dispute was arbitrable, and enforcing the award does not conflict with Ukrainian public policy. The application was filed within the time limit of Article 475 and with the documents required by Article 476 of the Code of Civil Procedure. p. 4
5. The court recognised the award and granted permission to enforce it. It ordered a writ of execution for EUR 32,518.43 and ordered the debtor to pay the court fee of UAH 960.50. pp. 4–5

Procedural history

1. 10 June 2016The parties sign supply contract No. 8/2016, with an ICAC arbitration clause in Section 14.
2. 20 September 2018The ICAC at the Ukrainian Chamber of Commerce and Industry issues its award in case AC No. 55/2018: it terminates the contract and awards EUR 32,518.43.
3. 7 November 2018The ICAC issues certificate No. 1859/14-6 confirming that the debtor was notified of every stage of the arbitration.
4. 4 February 2019The award creditor applies to the Kyiv Court of Appeal for recognition and enforcement.
5. 11 April 2019The Kyiv Court of Appeal grants the application and orders a writ of execution. The full text is drawn up on 24 April 2019.
6. 10 May 2019The ruling enters into force, according to the court register.

Tribunal, counsel and experts

Decided by

• O.I. Shkorina Judge, Kyiv Court of Appeal

For the claimant

Oleh Oleksandrovych Rachuk

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Keywords

• New York Convention
• recognition and enforcement
• Article V
• Article III
• Ukraine
• ICAC Ukrainian Chamber of Commerce and Industry
• domestic seat international award
• supply contract
• non-delivery of goods
• public policy
• proper notice
• sole arbitrator
• writ of execution
• Ukrainian Code of Civil Procedure
• Law on International Commercial Arbitration
• timber

Summary generated with AI from the published documents — refer to the award for the authoritative text.