Agro-Holding v. Valars S.A.

No. 16894/08 (2009)

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Agro-Holding v. Valars S.A.

Russian Federation Supreme Arbitrazh Court
No. 16894/08 (2009)

Facts

In 2007 OOO Agro-Holding (Agro-Holding), a Russian company, and Valars S.A. (Valars), a Swiss company, entered into a contract for the delivery of wheat. The parties exchanged a contract by fax, which recited that its terms were valid until the parties exchanged originals, which never happened. The faxed contract also contained an arbitration clause. A dispute arose between the parties about performance of the contract, and the matter was arbitrated before the Grain and Feed Trade Association (Gafta) in London. The arbitration panel awarded Valars $666,000 plus interest, costs, and expenses. Valars sought enforcement of the award against Agro-Holding in Russia. The lower court affirmed the arbitral award, and Agro-Holding appealed to the Russian Federation Supreme Arbitrazh Court. On appeal, Agro-Holding argued that the contract between the parties was never fully formed and that there was no enforceable arbitration cause. Agro-Holdings further argued that Valars did not submit any evidence that Agro-Holding was duly notified about the time and place of the arbitral proceedings pursuant to the 1965 Convention on the Service Abroad of Judicial and Extrajudicial Documents in Civil or Commercial Matters.

Rule of Law

Issue

Holding and Reasoning ()

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