Saudi Arabia
JordanAl Madani & Co. Law Firm & Legal Consultants
From Delay to Victory: A Legal Triumph in Maritime Law
In the realm of international trade, legal disputes are an inseparable part of the business process. However, managing these disputes professionally can be the difference between loss and victory. This is the story of how a grain trading company, with the help of our legal team, transformed a tough challenge into a significant legal win after a grueling legal battle before the Amman Court of First Instance.
The Beginning: A Contract with a Government Entity
In late 2014, Company A, specializing in grain trading, entered into a contract with a Jordanian governmental entity to supply the Kingdom with a massive shipment of 100,000 tons of wheat. The shipment was sourced from various countries, including Russia, Ukraine, France, and Germany, and was required to meet the health and technical standards of Jordan, as outlined in the contract.
Upon arrival at the Port of Aqaba, challenges began immediately. The ship, loaded with wheat, arrived on schedule, and three days after docking, samples were collected for initial testing by the Food and Drug Administration. While the initial report confirmed the cargo’s suitability for human consumption, the governmental entity questioned the test results, requesting a retest by the Royal Scientific Society and the Food and Drug Administration. This request caused significant delays in offloading the cargo, with the retesting process itself delaying the shipment for over 14 days due to an error in the initial testing method. Nonetheless, the retest once again confirmed that the shipment met all the necessary Jordanian technical standards.
Despite Company A fulfilling all its contractual obligations and the tests confirming the wheat’s compliance, the governmental entity imposed demurrage charges on Company A for the delayed unloading of the vessel.
Company A immediately responded by sending a formal letter to the government, explaining the error in the testing methodology. The company also contacted the Director General of the Food and Drug Administration, clarifying the proper procedures for testing. However, the government insisted on a retest, causing the delay.
This unjustified delay resulted in additional costs for Company A, including storage fees and demurrage penalties. The company was left with no choice but to pursue legal action, seeking compensation for the extra costs incurred and legal interest.
Legal Escalation: The Dispute Over Delay and Compensation
The delay was not just a logistical problem; it escalated into a legal dispute. When Company A’s management reached out to our legal team for a consultation on the best course of action to seek compensation from the government, we were ready to help. After a thorough discussion of the case details and a review of the supply contract and supporting documents, we advised the company to opt for commercial arbitration instead of litigation.
We sent a formal notice to the government entity, requesting the appointment of an arbitrator to resolve the dispute. We informed them that should they decline, we would proceed with litigation. As expected, the government refused to appoint an arbitrator, forcing us to file a lawsuit before the Amman Court of First Instance.
We filed a claim for $335,958.33 (or its equivalent in Jordanian dinars), which included all fees, costs, legal expenses, and interest. Our claim was based on official reports and certificates issued by government agencies, including testing authorities. To support our claim, we submitted written evidence and official certificates as part of the legal documentation presented to the court. Although we requested the court to call witnesses to provide testimony, the court refused, deeming the written evidence sufficient. As a result, the court also denied our request for expert evaluation to assess the situation more precisely.
The Court’s Ruling and Appeal
Despite our efforts and the extensive written evidence submitted, the Court of First Instance ruled against our client. The decision was unexpected, but our legal team did not back down. We immediately appealed to the Jordanian Court of Appeal, seeking a reconsideration of the case. In our appeal, we highlighted the trial court’s error in refusing to hear personal testimony and its failure to order an expert evaluation. We argued that the written evidence alone was insufficient and that additional testimony and expert analysis were necessary to prove Company A’s rights.
In our appeal brief, we pointed out the trial court’s misjudgment in evaluating the evidence and the testimonies, which ultimately led to an unjust ruling.
The Final Decision: A Victory for Justice
After lengthy hearings and meticulous deliberations, the Court of Appeal issued its ruling in favor of Company A, overturning the previous judgment. The court awarded Company A $251,167 (or its equivalent in Jordanian dinars) as compensation for the damages caused by the delay. Additionally, the court ordered the government entity to cover all court fees, costs, and legal interest from the date of the claim until full payment. The court confirmed that the delay was the result of errors in the testing procedures, not any fault on the part of Company A.
This ruling was a major victory for the company and demonstrated that justice can prevail, even in the most complex cases.
Outcome: The Impact of Victory
Company A’s success in this case was not just a legal win but also had a significant impact on its business and reputation. Thanks to the tireless efforts of our legal team, the company was able to recover its costs and secure compensation for the damages incurred. This victory boosted the confidence of its clients and partners, proving that the company could stand firm in the face of challenges and crises.
This case highlights the importance of thorough preparation and unwavering defense of rights in legal disputes. It also showcases the role of professional attorneys in achieving justice and success for the companies they represent.
Conclusion
Success stories like that of Company A remind us that true success requires facing challenges with confidence and determination, leveraging available expertise to achieve justice and protect rights. Our legal team, which represented Company A, was the trusted partner that helped the company navigate the turbulent waters of legal disputes and reach safe harbor.
