Freehill Partner William H. Yost prevailed in arbitration on a heavily contested demurrage dispute involving multiples vessels and contracts under amended NORTH AMERICAN EXPORT GRAIN ASSOCIATION, INC. No. 2 (“NAEGA 2”) terms. Freehill represented Soreidom S.A. (“SOR”), the buyer under the contracts. The controversy centered on the interplay between the terms of the amended NAEGA 2 relating to Notice of Readiness (“NOR”) and the separate express payment and credit terms between SOR and seller. The Arbitrator agreed that NOR was properly tendered notwithstanding seller’s assertion that NOR was rendered invalid by alleged breaches of the credit terms, and rejected seller’s arguments that the credit terms were modified either through unilateral communications or a purported course of performance or dealing, among other arguments. Ultimately, the Arbitrator awarded SOR the full amounts of demurrage claimed, together with interest and amounts toward Attorney’s fees and Arbitrator’s fees, all totaling in excess of $900,000. The complete decision is available here.
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