Russian court supports Odfjell
The Cassation Court in Sankt Petersburg decides in favour of Odfjell against the Sevmash yard.
The verdict is the second in favor of the Norwegian shipping company. As previously reported, the State Commercial Court in Arkhangelsk in December 2010 also decided in Odfjell’s favour. Sevmash appealed that decision and the case was subsequently taken to the Sankt Petersburg Cassation Court.
Read also: Sevmash to appeal against court decision in Odfjell case
Odfjell in 2008 decided to cancel a major contract with Sevmash following the latter’s reported inability to follow up contract terms. The contract was 12 chemical tankers, each of about 45,000 dwt.
Odfjell claimed for damages and was awarded USD 43 million plus interest by the Swedish Arbitration Tribunal on 30 December 2009. The Russian shipyard failed to honour the international award, forcing Odfjell to seek enforcement within Russia. A ruling was made by the State Commercial Court in Arkhangelsk on 10 December 2010, in Odfjell’s favour. However, Sevmash appealed the decision, a press release from the company informs.
Now, the Russian company will have to pay the Norwegian shipping company about 50 million USD.
