Aceris Law is pleased to announce the successful representation of a Croatian company in an ICC arbitration against an Italian counterparty arising from a major industrial construction project in the energy and petrochemical sector in Croatia. The Arbitral Tribunal issued a final award fully upholding the client’s claims, awarding the vast majority of costs in the client’s favour, and dismissing all counterclaims in their entirety. The case was conducted against a Chambers-recommended law firm.
The Dispute and Strategic Issues at Stake
The arbitration arose from a cross-border construction contract for mechanical works on a large-scale refinery project. Following significant delays and contractual renegotiations, the contract was terminated, triggering a dispute over the financial consequences of termination.[1]
The Respondent, an Italian main contractor, advanced extensive counterclaims exceeding several million euros, alleging completion costs, back charges, defects, delays, and other purported losses. Our client, a Croatian contractor, sought to recover the amounts contractually due following termination.
The tribunal rejected the Respondent’s jurisdictional objection, confirmed the correct interpretation of the termination provisions under Swiss law, and accepted our client’s methodology for calculating the sums due. The Respondent failed to substantiate any of its counterclaims, all of which were dismissed.
A Decisive Result for Our Client
The arbitration was conducted under the 2021 ICC Rules, seated in Geneva, with Swiss substantive law governing the dispute. The total amount in dispute exceeded EUR 10 million.
The tribunal awarded our client the amounts due following termination, together with interest, and ordered a favourable allocation of costs reflecting our client’s complete success. In doing so, the tribunal confirmed the correct application of the contractual termination accounting mechanism, rejected the Respondent’s attempts to inflate completion and defect costs, and found that the alleged delay-related and back-charge claims were not supported by the contractual framework or the evidentiary record. The award underscores that termination and accounting clauses in complex construction contracts will be enforced, and that unsupported and inflated counterclaims will not prevail.
A Proven Track Record in Complex Construction Arbitrations and Reasonable Fees
This decision follows a series of successful arbitration outcomes secured by Aceris Law in the construction and energy sectors, reinforcing the firm’s position as a leading boutique arbitration law firm for complex international arbitration disputes. The firm’s lawyers, including William Kirtley, Nina Jankovic, and Marta Milanovic, who served as counsel along with other members of Aceris Law’s team, brought deep legal knowledge and unwavering dedication to securing justice for their client.
Despite achieving a complete victory, Aceris Law’s legal fees were less than half those charged by opposing counsel, underscoring the firm’s commitment to delivering exceptional results with cost-effective representation.
Aceris Law has extensive experience as counsel in complex construction arbitrations such as this one and is known for its outstanding track record, unwavering commitment to its clients, and always reasonable legal fees for the highest quality international arbitration legal representation.
With more than two decades of international arbitration experience, Aceris Law’s arbitration lawyers represent clients globally under nearly all laws.
If you are involved in an arbitration, facing one, or thinking about starting arbitration proceedings, do not hesitate to contact Aceris Law to discuss how its experienced international arbitration team can assist.
[1] For a general discussion of termination of construction contracts, see Aceris Law, Termination of Construction Contracts.