SIGNUM lawyers won an arbitration case on recovery of damages of circa KZT 700 mln

SIGNUM lawyers successfully represented the Client - a major uranium production company in an arbitration case on recovery of damages under the construction contract.

Our Client made an advance payment to the contractor for purchase of goods, materials and equipment under the construction contract. Following contractual breach by the contractor (failure to fulfil its obligations under the contract), the Client terminated the contract and claimed the unspent part of the advance payment back, as well as reimbursement of the Client’s expenses related to removal of defects.

The arbitration was dragged on for as many as 3 years due to various complications, including conducting several independent examinations, the contractor acting in bad faith (unnecessarily challenging the need for independent examinations, proposed candidacies of independent experts), etc.

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Abylkhair Nakipov: “Thanks to the coordinated work between the Client’s Construction Department and SIGNUM lawyers, the arbitration judges unanimously upheld the Client’s position and qualified failure to return the advance payment as a loss to the Client and should be recovered from the contractor. In addition, the arbitration court partially satisfied the Client’s claims for reimbursement of the Client’s expenses for curing defects caused by the contractor during construction (i.e. hidden defects), as well as those related to expert opinion preparation and the arbitration fees. ”