Favorable settlement for our client in maritime arbitration

Our Dispute Resolution team represented a client in LMAA arbitration concerning a demurrage claim of USD 267,375 at loading and discharging ports, brought by a Chinese counterparty.

Although the charter agreement was unfavorable to our client, after exchanging submissions, we entered into extensive negotiations and persuaded the counterparty to reduce its claim by 55%, to USD 145,000. The dispute was thus successfully settled.

The case involved significant delays in loading and discharging our client’s cargo, with the charter placing the resulting costs on our client.

Albertas Šekštelo and Ramūnas Audzevičius acted as lead counsel in both the arbitration and the subsequent negotiations. Despite the counterparty having a strong case, they managed, through persistent negotiations, to substantially reduce the claim and avoid further arbitration costs.

This matter illustrates that even in seemingly dead-end situations, effective negotiations can lead to favorable settlements that save clients both time and money.

“It was a complicated case for our client. By using effective negotiation tools and leveraging cultural aspects, we managed to reach a settlement in our client’s favor,” said partner A. Šekštelo.