Defense of a client of a clothing manufacturer in a dispute with a Kuwaiti company regarding debt collection for delivered and unpaid goods
In January 2022, our client sent another batch of VALERY KOVALSKA brand clothes to Kuwait for the Alothman chain of stores. After the start of the full-scale invasion, the Kuwaiti company stopped paying for the goods and most of the cost of the consignment remained unpaid.
The client turned to us with a request to find ways to collect the debt from the debtor. Given that the amount owed was not commensurate with the client's possible expenses for finding lawyers in the State of Kuwait and accompanying the court process at the location of the debtor, we began to look for ways to start the court process in Ukraine.
According to the general rules of jurisdiction, such business disputes are considered at the location of the debtor. However, we were able to convince the court that, given the terms of delivery of the goods, the delivery contract is performed on the territory of Ukraine, and therefore we can use the rule of alternative jurisdiction and consider the dispute at the place of performance of the contract.
We also substantiated that the dispute should be considered in accordance with the provisions of Ukrainian legislation. As a result, our lawyers managed to convince the Economic Court of the city of Kyiv that the case is under its jurisdiction, and the court opened proceedings in the case and satisfied the claim. This made it possible to significantly reduce the client's costs for legal support of the dispute in court.