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Pepeliaev Group Helps Korea's Daesung Industrial Co. Win in Russian Contractual Dispute

Pepeliaev Group Helps Korea's Daesung Industrial Co. Win in Russian Contractual Dispute

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The Pepeliaev Group's St. Petersburg office has successfully represented Korean energy holding company Daesung Industrial Co., Ltd. in its claim for USD 4 million from its Russian counterpart.

According to the Pepeliaev Group, "our client was seeking to recover from its Russian contracting party a four-million dollar debt under agreements for the sale and purchase of products manufactured in Korea. The project continued for more than one year. Our lawyers succeeded in winning the dispute despite the scant and sometimes directly contradictory evidentiary base. The primary difficulty was that there was no single document that amounted to a written sale and purchase (or supply) agreement between the parties. Instead, only e-mail correspondence between representatives of the claimant and the defendant was available. Further, the products from Korea were not shipped directly to the claimant, but they were sent to addresses of third parties which the defendant specified in its e-mail requests. The defendant had no formal connection with the recipients of the products.

Nevertheless, the Pepeliaev Group’s lawyers succeeded in persuading the court that the parties had entered into one-time sale and purchase agreements by exchanging correspondence by e-mail. As a result, the State Commercial Court of St Petersburg and Leningrad Region upheld the client's claim in full."

“Currently, an ever increasing number of fraudulent schemes are being used when goods are supplied," commented Sergey Spasennov, Partner at the Pepeliaev Group. "A particularly popular one involves the scammers asking for goods to be shipped to third parties without executing a contract or after a contract has been executed featuring a front company. The instructions to this effect come from a private e-mail box or by telephone. Subsequently, in court, it will be very difficult to prove that a legal relationship between the parties really existed. However, we succeeded in having several such cases resolved in favor of our clients, which were good-faith businesses.”

The Pepeliaev Group’s team included Partner Sergey Spasennov and Associate Alexandra Antonik, with assistance from the head of the firm's Korean Desk, Cheong Noh-Chung.

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Founded in 1993, Egorov Puginsky Afanasiev & Partners is the leading full-service law firm in the CIS with offices in Russia, Ukraine and Belarus and associated offices in the UK, the USA and Cyprus.

We advise its clients in many areas of law, including: dispute resolution in Russia and abroad, corporate law, M&A, antitrust issues, project finance and PPP, restructurings and insolvencies, energy and natural resources, property management and privatization, environment, technical regulation and industrial safety, banking and finance, intellectual property, criminal law, real estate and construction, taxation, family and labour disputes, marine and transport law, and international trade and customs.

We combine high academic qualifications, internationally acknowledged moral and ethical values, senior partners' professional experience and practical abilities with the vigour and knowledge of younger attorneys that enables thus providing clients with reliable, first-class service according to both Russian and western standards through a flexible structure.

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