The arbitration award in Metal VM J.S. v. Janina was the first award to be rendered by the Arbitration Court of the Kosovo Chamber of Commerce.
This arbitration concerned a dispute arising out of a sales contract signed in 2009 between Metal VM (a Serbian corporation) and Janina (a Kosovo corporation) regarding electric boilers to be used for a central heating system.
The agreed price for each boiler was € 260,00. Claimant (seller) started delivering the boilers in May and, in August, sent the notice for payment. Respondent replied that the parties orally agreed that payment would be made either at the bank account or by delivering substitute goods to claimant.
In 2011, Claimant filed for arbitration before the Permanent Tribunal of Arbitration at the Kosovo Chamber of Commerce for compensation in the amount of € 26.000,00.
First, the Sole Arbitrator upheld its jurisdiction over the claim according to the Kosovo Arbitration Rules of 2011, since it was clear that the dispute arose out of a sales contract between the parties to the arbitration.
On the merits, the Sole Arbitrator held that Kosovo Law describes a sales contract as a special contract and, as such, it can only be modified in writing and signed by both parties. Therefore, any modification made orally shall be considered invalid unless made with prior written consent of the parties. The Tribunal thus ruled that the oral amendment could not be taken into consideration.
Further, the Sole Arbitrator found that Respondent failed to fulfill its contractual obligations and so breached the sales contract.
As a result, the Sole Arbitrator allowed payment of penalties at the request of the Claimant. The Sole Arbitrator stated that penalties were to be calculated from July 21, 2011, which is the date when the Claimant requested the commencement of arbitral proceedings and submitted its request before the Permanent Tribunal of Arbitration.
The Tribunal thus ordered Respondent to pay Claimant the amount of € 26.000,00, as well as € 1.900,00 for procedural costs.