Description Of Legal Dispute
Our company JSM-Pannonica, Kft in 2011 concluded Framework services-contract with state-owned commercial enterprise Lesy Slovenskej republiky, š. p. (Forests of Slovak republic, state-owned enterprise) which is published in Central registry of contracts with public interest.
Principal sublcaused of the Article 3 governs ways of fullfilment of above described purpose as follows:
3.1 . Based on Debt recovery Order of the dlient, the provider shall take the client’s documentation for claims that are more than 60 days post due. and notify the client need to submit additional documents.
3.2. Client shall submit to the claims included in the program, all available evidence for screening and enforcement and in the number of copies, what is the expected number of parties to !he dispute + 1 .
3.3. Based on the scrutiny of claims and the contracting parties shall conclude a specific agreement on assignment of receivables, if slovak debtors are concerned. Unless the followning contracts otherwise noted, applies to the mutual rights and obligations of the parties clause Art. IV of present contract.
For the claims of Lesy SR against foreign debtors there were agreed two provision calculation levels 10 per cent from sum adjudicated or 15 per cent of sum recovered. For the domestic claims there is provision in Art. IV providing for assignment for recovery with assignment consideration 100 per cent of nominal sum of receivables and back-assignment to original creditor after award would be rendered for consideration in the sum corresponding to 90 per cent of nominal receivable, therefore also providing for 10 per cent fee for JSM-Pannonica, Kft.
As the contract is providing for legal fees to be paid by Forests of SR, state-owned enterprise, there would be no real costs of recovery burdening the JSM-Pannonica, Kft.
Meanwhile, we did provided only extremely limited service – instruction of two in-house councels of the client. These in-house counsels did not implement our advices despite the purpose of contract where it is unambigously stipulated that partakers of instruction to be provided by JSM-Pannonica, Kft shall be identified by client as responsible for implementing such measures.
Following order for instruction meeting and its realisation, our advices were not implemented ( or were not implemented in full) but even more than that, our client despite renewed requests to informations about receivables to be included in our services package give us no information of any kind which barred us to scrutinise receivables and do any work as provided for by framework contract.
However we were able to scrutinise published accounts and balances of the Forests of Slovak republic, state-owned enterprise, and we found that enterprise was able to let there intact huge amount of unpaid receivables without any consulting (in specific years 7-11 million EUR of account receivables, and when these were 1 year overdue the enterprise only created reserves in the balance sheet and written-off huge amounts of these accounts receivables with no try to use our agreed services.
Therefore we are heading to initiate commercial arbitration based on arbitration clause included in contract (which has been subject of publication in official government publication registry and therefore shall be not objected as to existence or form).
Place of arbitration shall be Switzerland, and parties have been excluded review of award by Federal Tribunal, therefore eventual award shall be virtually non-objectionable.
With regard to material law in force in Slovakia, legal ground of the arbitration request will be stipulation of section 363 and seq bellow of the Commercial Code which reads as follows:
Section 367
A creditor shall be entitled to demand – from the debtor who is in delay with the fulfillment of a certain obligation – compensation for the damage thus incurred under Section 373 et seq. below. The creditor shall be entitled to repudiate the contract under circumstances stipulated by law or the contract.
As prescibed by intertwinned articles of Commercial Code and Civil Code of Slovak Republic part of the damages is also loss of profit. As we have agreed our percentual provisions and we have data about receivables overdue (only more than year overdue) and receivables written-off we calculated our loss of profit as 1 875 000 EUR.
Username
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sjancok
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E-mail Address Associated With Campaign
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sjancok@jsm-pannonica.biz
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Country Where Your Dispute Is Located
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Slovakia
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How Much Litigation Funding Do You Want To Raise?
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$50,000.00
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Headline For Your Litigation Crowdfunding Campaign
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Commercial Arbitration in Switzerland for 1 875 000 EUR damages against slovak state-owned commercial enterprise with huge assets
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Description Of Your Legal Dispute
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Our company JSM-Pannonica, Kft in 2011 concluded Framework services-contract with state-owned commercial enterprise Lesy Slovenskej republiky, š. p. (Forests of Slovak republic, state-owned enterprise) which is published in Central registry of contracts with public interest.
Principal sublcaused of the Article 3 governs ways of fullfilment of above described purpose as follows:
3.1 . Based on Debt recovery Order of the dlient, the provider shall take the client’s documentation for claims that are more than 60 days post due. and notify the client need to submit additional documents.
3.2. Client shall submit to the claims included in the program, all available evidence for screening and enforcement and in the number of copies, what is the expected number of parties to !he dispute + 1 .
3.3. Based on the scrutiny of claims and the contracting parties shall conclude a specific agreement on assignment of receivables, if slovak debtors are concerned. Unless the followning contracts otherwise noted, applies to the mutual rights and obligations of the parties clause Art. IV of present contract.
For the claims of Lesy SR against foreign debtors there were agreed two provision calculation levels 10 per cent from sum adjudicated or 15 per cent of sum recovered. For the domestic claims there is provision in Art. IV providing for assignment for recovery with assignment consideration 100 per cent of nominal sum of receivables and back-assignment to original creditor after award would be rendered for consideration in the sum corresponding to 90 per cent of nominal receivable, therefore also providing for 10 per cent fee for JSM-Pannonica, Kft.
As the contract is providing for legal fees to be paid by Forests of SR, state-owned enterprise, there would be no real costs of recovery burdening the JSM-Pannonica, Kft.
Meanwhile, we did provided only extremely limited service – instruction of two in-house councels of the client. These in-house counsels did not implement our advices despite the purpose of contract where it is unambigously stipulated that partakers of instruction to be provided by JSM-Pannonica, Kft shall be identified by client as responsible for implementing such measures.
Following order for instruction meeting and its realisation, our advices were not implemented ( or were not implemented in full) but even more than that, our client despite renewed requests to informations about receivables to be included in our services package give us no information of any kind which barred us to scrutinise receivables and do any work as provided for by framework contract.
However we were able to scrutinise published accounts and balances of the Forests of Slovak republic, state-owned enterprise, and we found that enterprise was able to let there intact huge amount of unpaid receivables without any consulting (in specific years 7-11 million EUR of account receivables, and when these were 1 year overdue the enterprise only created reserves in the balance sheet and written-off huge amounts of these accounts receivables with no try to use our agreed services.
Therefore we are heading to initiate commercial arbitration based on arbitration clause included in contract (which has been subject of publication in official government publication registry and therefore shall be not objected as to existence or form).
Place of arbitration shall be Switzerland, and parties have been excluded review of award by Federal Tribunal, therefore eventual award shall be virtually non-objectionable.
With regard to material law in force in Slovakia, legal ground of the arbitration request will be stipulation of section 363 and seq bellow of the Commercial Code which reads as follows:
Section 367
A creditor shall be entitled to demand – from the debtor who is in delay with the fulfillment of a certain obligation – compensation for the damage thus incurred under Section 373 et seq. below. The creditor shall be entitled to repudiate the contract under circumstances stipulated by law or the contract.
As prescibed by intertwinned articles of Commercial Code and Civil Code of Slovak Republic part of the damages is also loss of profit. As we have agreed our percentual provisions and we have data about receivables overdue (only more than year overdue) and receivables written-off we calculated our loss of profit as 1 875 000 EUR.
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Featured Image For Your Litigation Funding Campaign
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End Date Of Your Litigation Crowdfunding Campaign
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2016-09-30
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How Much Compensation Can You Receive If Your Case Wins?
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$1,875,000.00
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Percentage Of Future Potential Compensation You Are Offering As A Reward (Success Fee / Contingent Fee)
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25% Of Amount Recovered
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| AUTOMATIC CALCULATIONS |
Potential Return Of Investors (Percent)
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937.5
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Estimated Total Reward Offered To Investors
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$468,750.00
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Estimated Remaining Compensation For Litigant
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$1,406,250.00
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Litigation Crowdfunding Campaign Author
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sjancok
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Role
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Litigant
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International arbitration case analysis is provided to Invest4Justice by the lawyers of the International Arbitration Attorney Network. All other legal advice is provided by Aceris Law LLC.
Estimated 937.5% Returns: Commercial Arbitration in Switzerland for 1 875 000 EUR damages against slovak state-owned commercial enterprise with huge assets
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