Wragge & Co LLP Finance Litigation team has secured a hard-fought victory for new client Ukrainian-based Prominvestbank in the Sea Emerald SA v Prominvestbank case.

The dispute regarded an alleged refund guarantee for a shipbuilding contract. Shipping company Sea Emerald claimed that a Prominvestbank employee had provided the guarantee and sought payment of US$17.3 million plus a substantial sum in interest.

The Commercial Court (Mr. Justice Andrew Smith) found that the Prominvestbank employee had no authority, actual, ostensible or by ratification, to enter into the guarantee on behalf of the bank, and dismissed the claim.

Director Tom Price represented Prominvestbank in the Commercial Court, supported by solicitor Hina Thakrar. Dispute resolution partner Richard Ellison led the team. Ukrainian law firm Arzinger & Partners referred the instruction. The Wragge & Co team worked closely with barristers Ali Malek QC of 3 Verulam Buildings and Philip Edey of 20 Essex Street.

Tom Price said: "Wragge & Co feel privileged to have received this important instruction from Arzinger & Partners. It is hugely satisfying to have secured this victory after nearly two years of determination and persistence. The case also makes an important point about what is within the usual authority of a bank branch and the steps to be taken to ensure a guarantee is enforceable."

Sergey Shklyar, managing partner of Arzinger & Partners (Kiev), said: "We have benefited immensely from our cooperation with Wragge & Co. As one of the leading law firms in the Ukraine, we can fully appreciate its outstanding ability to provide high-quality legal services, handle complex cases and ensure successful and fruitful cooperation with clients and partners from East European jurisdictions."

Roman Kudritskiy, head of legal at Prominvestbank, said: "We have been happy to work with such a highly-qualified, friendly and motivated team of lawyers. Although it was a demanding case, we always knew that Wragge & Co did its best to represent our interests and defend our rights during the whole course of proceedings."

Prominvestbank is one of the Ukraine's largest commercial banks, with 26 regional head offices, 262 branches and over 1,000 agencies. Sea Emerald SA is a Panamanian shipping company, part of the Laskaridis Group.

Finance litigation is a core area of expertise in Wragge & Co's 19-partner Dispute Resolution group. It advises a broad mix of domestic and international clients including Enterprise Inns, British Airways and Scottish & Newcastle. In the past year, Wragge & Co litigators have secured a number of high-profile victories. These include securing the recusal of Mr Justice Singer in the Court of Appeal and steering Owen Pell Limited to success in the Technology and Construction Court in a case that confirmed the binding nature of expert determination.

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For further information about this press release, contact Kathryn Hobbs on +44 (0)121 213 2397, Alexa Highfield on +44 (0)121 213 2396 or Amie Ryalls on +44 (0)121 213 2360

This press release may contain information of general interest about current legal issues, but does not give legal advice.