INDEX OF AUTHORITIES, CASES AND AWARDS

· China International Economic and Trade Arbitration Commission (CIETAC ) Arbitration Rules (http://cn.cietac.org/rules/rules.pdf) – 9,36

· CISG, United Nations Convention on the International Sale of Goods, Vienna, 1980 (http://www.cisg.law.pace.edu/cisg/text/treaty.html)

· Code of Ethics for Arbitrators in Commercial Disputes (http://www.americanbar.org/content/dam/aba/migrated/dispute/commercial_disputes.authcheckdam.pdf) - 10

· IBBA Business Brokerage Standards (http://www.ibba.org/portals/0/pdf/IBBA%20Business%20Brokerage%20Standards.pdf)

· International Bar Association - IBA Guidelines on Conflicts of Interest in International Arbitration (http://www.ibanet.org/ENews_Archive/IBA_July_2008_ENews_ArbitrationMultipleLang.aspx) – 1,2,21,23,24,31,36

· UNCITRAL DIGEST ON PRECEDENT LAW, Commentaries to the article 74

· UNCITRAL Model Law on International Commercial Arbitration (http://www.uncitral.org/pdf/english/texts/arbitration/ml-arb/06-54671_Ebook.pdf)

· UNITDROIT Principles of International Commercial Contracts (http://www.unidroit.org/english/principles/contracts/principles2004/integralversionprinciples2004-e.pdf)

Cases

· Hrvatska Elektroprivreda DD v The Republic of Slovenia (ICSID Case No ARB/05/24) - 25

· The Rompetrol Group NV v Romania (ICSID Case No ARB/06/3) - 25

ABBREVIATIONS

& and

/s/ signed

AA application for arbitration

A, art. Article

BGH Bundesgerichthof [Federal Supreme Court—Germany]

CIETAC China International Economic and Trade Arbitration Commission

CISG United Nations Convention on Contracts for the International Sale of Goods of 11 April 1980

Cl. Ex. Claimant’s Exhibit

CLOUT case law of UNCITRAL texts

EWCA England and Wales Court of Appeal

GB Great Britain

i.e. id est [that is]

ICC International Chamber of Commerce

Inc. Incorporated

Ltd. Limited

No. number

p. page

P.O. Clarifications given by the President of the Tribunal in Procedural Order

Para paragraph

U.K. United Kingdom

UNCITRAL United Nations Commission on International Trade Law

UNCITRAL Model Law UNCITRAL Model Law on International Commercial

Arbitration of 1985

UNCTAD United Nations Conference on Trade and Development

USD United States Dollars

STATEMENT OF FACTS

1. Mediterraneo Elite Conferences Services, Ltd (hereafter “Elite”) operates high-end venues.

In spring 2010 it purchased a luxury yacht, the M/S Vis, for use as a conference venue and sought to refurbish the yacht with the latest in cabin and conference technologies, superior to anything otherwise available on the market.

Elite and Worldwide Corporate Executives Association (hereafter “Corporate Executives”), a high profile organization of top level corporate executives and is a long standing client of Elite, planned the event on the M/S Vis 12 – 18 February 2011.

1. The refurbishing of the M/S Vis was scheduled to be completed on 12 November 2010, ten weeks were scheduled for testing all of the systems prior to scheduling the first event.

On 26 May 2010 Elite entered into the contract with Equatoriana Control Systems, Inc (hereafter “Control Systems”), which was to supply, install and configure the master control system that is critical to venue operation, working with other specialist suppliers and installers to make sure everything functioned according to plan.

Manufacture of the processing units, the core element in the overall control system, was to be done by Oceania Specialty Devices, incorporated in Oceania (hereafter “Specialty Devices”). Specialty Devices had designed the processing units to use the D-28 “super chip” recently announced by Atlantis High Performance Chips, incorporated in Atlantis (hereafter “High Performance”). The chip was scheduled to begin in the middle of August 2010, i.e. in good time for the refurbishment. It was expected that it would be another six months, i.e. circa February 2011, before any rival chip with comparable qualities would be available.

1. On 26 may 2010, Equatoriana Control Systems, Inc (hereafter “Control Systems”) entered into the contract with Mediterraneo Elite Conferences Services, Ltd (hereafter “Elite”), company operating high-end venues. Control systems was to supply, install and configure the master control system on the recently purchased yacht, the M/S Vis, for use as a conference venue for Worldwide Corporate Executives Association (hereafter “Corporate Executives”), an organization of top level corporate executives, planned on 12 – 18 February 2011.

1. Manufacture of the processing units, the core element in the overall control system, was to be done by Oceania Specialty Devices, incorporated in Oceania (hereafter “Specialty Devices”). Specialty Devices had designed the processing units to use the D-28 “super chip” recently announced by Atlantis High Performance Chips, incorporated in Atlantis (hereafter “High Performance”).

1. On 13 September 2010 Control Systems telephoned Elite and then confirmed in writing that the production of the D-28 chips had ceased by virtue of a fire at the High Performance production facility on 6 September 2010 and was expected to be continued about 24 October 2010. Consequently, the processing units for the control systems would not be available to it until at least late, in turn, the delivery of the control systems could not be expected before the middle of January 2011, with installation, configuration and verification to take another ten weeks.

1. High Performance had a limited supply of the chips in its warehouse which had not as yet been designated for a specific customer. It acknowledged that the Specialty Devices’ order would require only a small portion of the stock in the warehouse and that it could have filled the order from its stock. However High Performancewas supplied the entire stock of chips to Atlantis Technical Solutions, a regular customer of High Performancethe real reason of which was that the CEOs of the two firms were longstanding close friends.

1. The officials from Corporate Executives stated that the publicity for the event had emphasized that it would be held on a luxury yacht. That is why wWhen it became evident that the M/S Vis would not be available on time Elite chartered an appropriate substitute yacht, the M/S Pacifica Star, at a cost of USD 404,000 plus port and handling fees of USD 44,000. The standard brokerage commission was 15 % of the rental cost, USD 60,600. In addition, Elite paid the broker a USD 50,000 success fee on top of the commission.

Additionally,

1. Elite made an ex gratia payment of USD 112,000 to Corporate Executives

so that it could make a partial refund to the delegates to its event as a necessary means to retain the goodwill and future business from Corporate Executives.

1. On 2 November 2010 the D-28 chips became available to Specialty Devices, on 29 November 2010 it completed the processing units and shipped them to Control Systems.

The

1. control system was delivered by Control Systems to the M/S Vis on 14 January 2011. Installation, configuration and verification were completed on 11 March 2011. Payment of the full contract price of USD 699,950 was made by Elite to Control Systems via the Mediterraneo National Bank on 21 March 2011.

1. On 14 April 2011 and in the subsequent correspondence Elite has been trying to assign the Control Systems denied its responsibility for the costs arising out of the delay in the installation of the master control system which happened by virtue of the fire on High Performance warehousefor the costs arising out of the delay in the installation of the master control system claimed by Elite in its letters dated 9 and 25 April 2011, correspondingly. Control Systems, naturally, denied its responsibility for the malfaction of the whole supply chain occurred in consequence of the impediment.

Date: 2016-01-14; view: 886