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International Cargo Carriage Contract: Case Law on Claims for Recovery of Freight Costs, Fines for Excessive Downtime, Material Damages for Loss of Cargo

Our law firm has almost reached the finish line in a legal dispute between a carrier and a customer under an international cargo transportation contract. Unfortunately or not, but it is not for us to judge, we joined this civil case after it was transferred from the conciliator judge to the “main judge” (he is also the presiding judge in the case). At that time, the controversial situation looked like this: the CSI had already taken interim measures by seizing our client’s funds located in the bank, as a result, a private complaint was filed in a timely manner against the court’s decision to cancel the interim measures, a response to the main claim was filed (in fact, it is also a counterclaim of the client), petitions for the attachment of documents to the materials of the civil case confirming and objecting to the plaintiff’s arguments and a great desire of the court of first instance to quickly consider the case. At the same time, we note that all of the above was done by the management of our client itself, without legal assistance!

It would seem that there is nothing complicated about it? There is an agreement signed by both parties and authorized persons, the cargo transportation agreement was concluded, according to the terms of its clauses it is necessary to make the remaining 50% of the freight. But, after reviewing all the documents submitted by our client, holding a mini-meeting with both the client and our colleagues, we, with errors, come to the conclusion that we really wanted to fight, if not 100% for winning the case, but for demonstrating character, integrity, and preventing the carrier from further negligent, irresponsible attitude to transportation. This is below and in as much detail as possible.

In fact, our client concluded not a cargo transportation agreement, but a freight forwarding agreement (we all know the difference between these subjects of the agreement and understand what we are talking about), the terms of the signed agreement do not quite protect our client, there are small rough spots/gaps, to which we understood that the court would pay attention. The carrier, also known as the forwarder, delivered only the greater part of the cargo accepted for transportation, approximately 20%, of the remaining cargo, in violation of the obligations assumed, he left it in an unguarded warehouse area, according to the words of the carrier himself, involved at the request of the plaintiff, he was in a hurry to get to the ferry to carry out the next loading in the EU. The cargo was lost, and it has its material value, in addition to everything else, the carrier violated the terms of delivery of the cargo (there is an excessive downtime of the vehicle), as part of the pre-trial claims work, the principal proposed to take into mutual settlement the amount of damage for partial loss of cargo, a fine for downtime. At the same time, such amounts were not recognized by the carrier/forwarder, since the CMR had a mark from the distribution warehouse about the acceptance of the cargo in full.

In order to restore justice in this persistent struggle, we filed a counterclaim, applied for interim measures, filed a considerable number of motions to attach documents (including the shipper’s claims for damage and downtime). It would seem that the court sees our position, despite the note in the CMR, and is about to issue a corresponding judicial act and that’s all, but the big surprise was the court’s ruling to leave the counterclaim without consideration. In order to protect property rights and continue attempts to prove in court that the carrier should be liable for the loss of cargo and property liability in the form of a fine for downtime, we cancel the ruling and the civil case is submitted for consideration as the basis for the court’s issuance of an additional decision on the counterclaim, since such a claim was stated.

The additional decision of the court of first instance was announced, the counterclaim was partially satisfied, the court recovered in full the excess downtime provided for by the terms of the contract, legal costs, but the claim for material damage due to partial loss of cargo was rejected due to the absence of more detailed information about the transported cargo in the terms of the concluded contract, confirmation of settlements with the shipper, the absence of a signed act on the fact of shortage of cargo at the time of its delivery at the distribution point.

We do not despair, we move on, it is necessary to gain a foothold in the appellate instance, we hope that we will be able to fill in the gaps that the court of first instance allowed, since such a judicial act will have a prejudicial effect for all participants in such transportation.

By this example we want to tell you, our future and regular clients, that there were and will be controversial issues regarding the execution of the contract, please, involve lawyers – claimants at the time of concluding the relevant contracts, who, taking into account their experience and judicial practice, if not completely, then certainly with minimal risk for you, will supplement the terms of the contract, or on a larger scale, with all the features and nuances, will approach it. Remember that each of us must do our job, leave the judicial-claim or contractual work to us, believe me, there is plenty of it there.

The second important and main advantage in my work on this case was the constant and stable support of the client for 6 months of hard work (not only representation in court, but also work with the CSI on the fact of double arrest of bank accounts, conducting business correspondence with the shipper, analyzing judicial practice), thank him for this!

In this regard, if you need qualified legal assistance related to international/republican automobile/railway transportation, legal disputes with freight forwarders, our company is always ready to protect your property rights and obligations both at the stage of concluding contracts and in the process of legal claims work!

Contact our specialists by phone +7 700 50 00 553 or click on the “order a call” button, which is below.

The trial and the court’s decision

Pre-trial negotiations on damages

Losses 143 000 Euro

Contractual slides

Rarely will a daredevil risk money, goods or his time without concluding a contract. And the one who shows the contract to a lawyer first will reduce his risks, or take them more consciously.

But there are non-standard cases: an urgent transaction, a contract of 30+ sheets… How to quickly understand the essence of the contract and calculate the risks?

Catch the top 5 tips + a tip as a gift

1. The main terms of the contract (subject, price, terms, payment, etc.) must be clear and understandable. Not clear or vague? Demand clarification and correction in the contract.
2. An equal volume of mutual rights, obligations and responsibilities, without bias in favor of one party. Bias not in your favor? The partner violates the principle of equality of the parties.
3. Do not fall for “oral” agreements. If it comes to a dispute, you won’t be able to rely on them.
4. Compare the final text of the contract with your amendments. It is much more difficult to make adjustments after signing the contract.
5. Always check jurisdiction. If jurisdiction is based on the location of the partner or an arbitration clause is specified, you are not an equal player in the business field.

Gift:

6. “We have a standard contract” is a myth of unkind partners. Any contract can and should be changed if the terms are not favorable to you. The exception is some types of contracts, but there are not many of them.

Any questions left? Ask us. We will share our experience and useful tips.

Peace of mind with KORGAN

In line for justice: state or arbitration court

In the realities of modern times, business acquires a “face”. It acquires a character, a mood, because business reflects our need for communication, recognition, popularity. We prefer a coffee shop where we know the barista or the owner himself, even from an Instagram page, we trust a doctor recommended by a friend, we buy goods in a well-known store.

But any partnership agreements, like acquaintances, can be with a minus sign: either you made a mistake and let us down, or your business partner did. What to do if pre-trial negotiations have reached a dead end, and the parties do not see any way to reconcile? The final step in the search for justice is the court. And here the most interesting part begins.

In Kazakhstan, for more than 20 years, there has been an alternative practice for judicial dispute resolution – through the state judicial system and in arbitration court.

With the state court, everything is more or less clear. Step by step: claim, evidence, state duty, consideration, court decision with the right to appeal. Minor variations of this path are set out in the country’s specialized codes and there is no need to retell them.

Let’s look at the arbitration court. Let’s start with the theory: in Kazakhstan, the work of arbitration courts is regulated by the Law “On Arbitration” dated 08.04.2016, which replaced two laws: the Law of the Republic of Kazakhstan “On Arbitration Courts” dated 28.12.2004 and the Law of the Republic of Kazakhstan “On International Commercial Arbitration” dated 28.12.2004.
There are two popular questions about the arbitration court: what is it and how does it work. The arbitration court is not a state court. It exists in the forms of permanent or temporary arbitration. The list of permanent arbitration courts is on the websites of the Ministry of Justice of the Republic of Kazakhstan and the Arbitration Chamber of Kazakhstan. Temporary arbitration is created to resolve a specific dispute. The court may include one or several arbitrators, who are elected by the parties to the dispute themselves. The arbitrator must meet the requirements of the Law “On Arbitration”. If the parties have applied to permanent arbitration, the dispute will be considered according to its rules; if the arbitration is temporary, the parties themselves determine the procedure for consideration. The procedure is approximately the same as in a state court: claim, evidence, response to the claim, consideration and decision on the merits. What to do with an arbitration decision? The same as with a state judicial act: you can appeal, you can issue an enforcement document.

Of course, it is impossible to tell about all the nuances within a short article, but there is good news, even two.

First: there is room for a couple of practical tips. To apply to arbitration, there must be an agreement or a condition in the contract on the jurisdiction of the arbitration court between the parties. Appealing to arbitration is paid, the cost is determined by each arbitration independently, and such payment can be much more expensive than the usual state fee. Before applying to arbitration, check its validity through the websites of the Ministry of Justice and the Arbitration Chamber of Kazakhstan. The competence of arbitration is limited by types of disputes.

Second: if everything is still unclear, but very interesting, or the business partner insists on an arbitration clause in the contract, contact us for advice. We will help, explain, protect.

In general, if we compare very broadly, state and arbitration courts are like state and private clinics. The choice is, of course, yours, but health requires a responsible attitude.

Confidence with KORGAN

Protection with KORGAN

Explanations for construction and installation works 3 Categories

Main Courts

Three Important Points When Filing a Claim

KORGAN successfully registered two companies in the AIFC

KORGAN Law Firm has successfully completed the registration of two companies in the Astana International Financial Center (AIFC). The work was carried out under the supervision of lawyer Aigerim Erikovna Kalibekova, who provided fast and professional support to clients at all stages.

Registration in the AIFC provides businesses with international opportunities, a preferential tax regime and protection of rights in an independent court.

If you are planning to open a business in the AIFC, entrust it to experienced specialists.

KORGAN successfully registered two companies in the AIFC

📞 Contact us:
Phone: +7 700 5000 553
Email: korgan.kaz@gmail.com

KORGAN is your legal partner in the AIFC.

Company registration in the AIFC: advantages, forms and legal support

Starting a business in Kazakhstan is becoming more and more international thanks to the Astana International Financial Centre (AIFC). This is a unique platform that allows you to operate under English law, attract foreign investors and use international business standards.

If you are planning to register a company in the AIFC, it is important to understand the legal structure, requirements and benefits that this financial centre provides.

Why choose the AIFC for business registration?

International business standards
Independent judicial system (AIFC Court, International Arbitration Centre and Mediation Centre)
Transparent regulation and strict control of AFSA
Preferential tax regime
Reliable protection of the rights of investors and companies

Legal forms of companies in the AIFC

Companies can be registered in the AIFC in the following forms:

Private Company – optimal for small and medium-sized businesses
Public Company – to raise capital through an IPO
Investment Company – for investment projects
Restricted Scope Company – for a limited type of activity
Special Purpose Company – for specific tasks
General Partnership – with full liability of partners
Limited Partnership / LLP – flexible forms with limited liability
Non-Profit Organisation / Funds – for non-profit activities
Accredited Companies – companies with an AIFC license

Conditions for registering a company in the AIFC

Absence of inactive companies or debts of the founders
Registration is possible only in the city of Astana
Compliance with the AIFC Act on Companies
Maintaining tax records and reporting in RK
Dispute resolution – only within the civil law sphere

Advantages of working in the AIFC jurisdiction

Access to international investments
Participation in forums and business communities
Efficient dispute resolution mechanisms
Minimization of legal and financial risks

Why you should contact the KORGAN law firm

Correct registration, choice of company form and legal support in the AIFC require knowledge of legislation, international law and experience in doing business with foreign partners.

KORGAN Company offers:

Consultations on registration and choice of company form in the AIFC
Preparation of documents in English and Russian
Full support at all stages of registration
Support in reporting and compliance with AFSA requirements
Protection of interests in the AIFC Court and International Arbitration

📞 Contact us today:

KORGAN Law Firm
Phone: +7 700 5000 553
Email: korgan.kaz@gmail.com

KORGAN — your partner in the AIFC jurisdiction.

«KORGAN» protected clients from losses of 50+ million tenge: how to invalidate a transaction

The team of the law firm “KORGAN” successfully challenged three major transactions, saved clients from losses of over 50 million tenge and proved that even the most complex contracts can be declared invalid. Find out how we achieved this and how we can help you!

Clients fell into a trap: unfair schemes on social networks

Entrepreneurs contacted us who became victims of aggressive marketing on social networks. They were offered a “unique patented method of hair restoration” that guaranteed a high income. In fact:

No profit – the promises turned out to be empty
Lack of support – after the clients paid, they were abandoned
Useless patent – the method had no commercial value

Clients signed contracts with monthly payments of up to 300,000 tenge for years to come. When they tried to terminate the agreement, they were intimidated with fines.

How KORGAN cancelled contracts and saved clients

The case was handled by intellectual property lawyer Emin Shirinov. Our strategy:

Result:

Clients avoided paying 15-20 million tenge each
⁠All patent holder claims rejected
Obligations cancelled – clients free from unfair conditions

Why should you contact KORGAN?

Specialization: complex disputes over contracts and intellectual property
Experience: victories in cases with multimillion-dollar risks
Free consultation: we will assess your situation before filing a claim

Don’t wait for the losses to grow! If you have been misled or unfavorable conditions are imposed, we will help you terminate the contract and get your money back.

Contacts for urgent assistance
📞 +7 700 5000 553
✉ korgancompany@gmail.com

«KORGAN» is your reliable defender in court!

Registration of BIN and EDS for the Croatian company KORGAN in one week: the experience of our law firm

Our law firm was approached by a Croatian state-owned company that planned to participate in a competition (tender) in the Republic of Kazakhstan.

The client’s main request was to promptly obtain a BIN (business identification number) and an EDS (electronic digital signature) in a short time.

The client’s company is a legal entity with 100% participation of the state of Croatia, and working with such structures requires a high degree of accuracy, transparency and compliance with international standards of document flow.

What is a BIN and why is it needed?

A BIN (business identification number) is a unique number assigned to legal entities and individual entrepreneurs in Kazakhstan.

It is used in all legal and financial transactions, including tax reporting, participation in government procurement and signing official documents.

Without a BIN, it is impossible to obtain an EDS and participate in tenders.

Documents required to obtain a BIN

The following documents were prepared and submitted to obtain a BIN:

Power of attorney from a non-resident legal entity to our employees
Notarized copy of the passport of the head of a non-resident legal entity
Constituent documents (Charter, certificate of state registration, certificate of tax registration, order (decision/minutes) on the appointment of the first director)
Extract from the Trade Register

All documents were apostilled, confirming their legal force in the territory of Kazakhstan, and notarized copies were made by a Notary of the Republic of Kazakhstan in accordance with the requirements of local legislation.

What is required to obtain an EDS for a foreign company?

Power of attorney according to the NUC RK sample
BIN
IIN for the company manager
Seal for a foreign company, in which the Kazakhstan BIN will be indicated
Application of the NUC RK

Tight deadlines and an individual approach

The deadlines were extremely tight – it was necessary to meet the deadline of one week. This required our team to be highly coordinated, flexible and have a deep understanding of bureaucratic procedures.

We worked actively with government agencies, including agreeing on an expedited review of the application, thanks to which it was possible not only to obtain the BIN in a timely manner, but also to issue an EDS for the client.

Result

Within 5 working days Croatian company:

Received IIN for the company director
Received BIN
Issued an EDS for an authorized person
Received the opportunity to participate in a tender in Kazakhstan

This project has become another confirmation of our ability to work promptly, professionally and in full compliance with the law, even under tight deadlines and with the participation of foreign government agencies. If your company needs to register in Kazakhstan, receive a BIN or EDS, we are ready to help in the shortest possible time submitted to the Registration Authority at the place of registration of the owner of the property.

Why us?

Experience working with foreign government agencies. We understand the specifics and bureaucratic features of such companies.
Deep knowledge of Kazakhstani legislation. All actions were in compliance with regulatory requirements.
We work in a short time. We know how to negotiate, we know with whom and how to interact.
Full transparency and support. The client is always aware of the current status and the next step.
International approach. We work with both private companies and government organizations abroad.

If your company needs to register in Kazakhstan, obtain a BIN or EDS in a short time – we are ready to take on the entire legal part and guarantee the result. Contact us – we know how to do it quickly, legally and effectively.

KORGAN Law Firm is ready to provide assistance at every stage of this process, providing competent support and assistance in preparing all the necessary documents.

Contact our specialists by phone +7 700 50 00 553 or click on the “order a call” button below.

Risks of the absence of constituent documents: what is important for an entrepreneur to know

In the course of providing legal services, our company is increasingly faced with the fact that most entrepreneurs do not have constituent documents on hand.

According to the Civil Code of the Republic of Kazakhstan, Article 41, paragraph 1, the list of constituent documents includes such documents as: a constituent agreement, a decision to establish a company, and the Charter.

There is another document that is not included in the list of constituent documents of an LLP, but is always requested by any government agency, when such a need arises, and by many of your partners and counterparties – an order on the assumption of office of the first manager (director).

What risks does an entrepreneur bear who does not have constituent documents?

The fact is that the absence or incorrect execution of constituent documents can lead to: serious legal consequences, undermining the trust of partners and other inconveniences in the course of entrepreneurial activity.

For example, your constituent documents will be among the first to be requested by the bank, since their provision is an important condition for opening a company account, as well as for subsequent changes made to the constituent documents.
Constituent documents play a key role when participating in tenders. They provide information on the legal status, goals and objectives of the company, which allows procurement organizers to evaluate potential suppliers.
When selling a share in a limited liability partnership (LLP), constituent documents, such as the charter and the memorandum of association, regulate the procedure for alienation of the share. They contain information on the rights and obligations of the participants, as well as on the procedures related to the sale or transfer of the share. In such situations, it is important to have clearly drawn up and legally correct documents.
Constituent documents can also be used when challenging transactions or decisions made by a legal entity. They establish rules and procedures that must be followed in the company’s activities, and may be the basis for recognizing a transaction or decision as invalid if they are violated.

The presence of properly executed constituent documents is not only the basis for the legal protection of your business, but also the basis for the further growth and development of your Business.

Contact our specialists by phone +7 700 50 00 553 or click on the “order a call” button below.

Author of the article: Kenzhemergenova M.N.

Religious Practices in the Workplace: Discrimination or Violation of Labor Conditions?

Our company is regularly contacted by clients with labor disputes. Be it employers or employees. Recently, our regular clients contacted us with a problem. Their former employee wrote a pre-trial claim to the Employer citing discrimination, due to the fact that the employer asked not to read Namaz in the workplace. By the way, the workplace is a store. That is, the place is not conducive to conducting such rituals. Let’s turn to labor legislation and see what we consider discrimination in labor.

Article 6 of the Labor Code of the Republic of Kazakhstan establishes that “No one can be subject to any discrimination in the implementation of labor rights on the grounds of origin, social, official and property status, gender, race, nationality, language, attitude to religion, beliefs, place of residence, age or physical disabilities, membership in public associations or other circumstances.”

Now let’s define what is considered discrimination in labor?

Discrimination in labor is the infringement of the rights of citizens, namely the individual, on any basis (age, race, gender, social status, etc.) by the employer in the labor rights established by law.

The legislation of the Republic of Kazakhstan does not provide for the employer’s obligation to provide additional time, place and opportunity for Employees to conduct religious rites. Of course, this condition can be stipulated when hiring, but in the case of our clients, this was not the case.

Moreover, the Supreme Mufti of Kazakhstan gave an explanation on this topic – and there it was also explained that the employer’s requirement not to conduct religious rites is not an infringement.

In addition, the Employee has the opportunity to change jobs to one where the performance of religious rites does not interfere with the activities of the enterprise.

Voluntary liquidation of LLP: how to avoid mistakes in the process of closing a company in Kazakhstan

Liquidation of a company is a complex and responsible process that requires careful preparation and implementation of certain procedures. In this article, we will consider the main stages and recommendations for the effective liquidation of an LLP in Kazakhstan.

The process of terminating the activities of a legal entity includes several stages, compliance with the deadlines established for each of the stages, preparation of a large number of documents and requires compliance with all legal norms.

Main stages of liquidation of an LLP

Step 1 – Preparation and adoption of a decision on liquidation

Before starting the liquidation procedure of an LLP, it is necessary to make a decision on liquidation of the company at a general meeting. This decision is recorded in the minutes or a decision if the founders have one participant.

Step 2 – Appointment of a liquidation commission

The commission will monitor and coordinate the liquidation process, which consists of representatives of the LLP (director, accountant, other key employees). The powers and composition of the commission are approved at a general meeting of participants and are formalized in the relevant minutes or decision.

Step 3 – Notification of Liquidation of LLP

In addition to sending notices to interested parties, it is necessary to publish an announcement of liquidation in newspapers of national significance. This should contain information on the deadlines for accepting claims from creditors, at least 2 months from the date of publication.

Step 4 – Drawing up an interim liquidation balance sheet, preparing liquidation tax reporting, etc.

Two months from the date of publication of the announcement, it is necessary to draw up an interim liquidation balance sheet and prepare liquidation tax reporting.

Step 5 – Closing accounts and deregistering cash registers

It is necessary to close all LLP accounts in banks and provide certificates of account closure to the State Revenue Department of the Ministry of Finance of the Republic of Kazakhstan. If there is a cash register machine (KKM), it should also be deregistered.

Step 6 – Drawing up a certificate of destruction of the seal

Step 7 – Submitting documents to the registration authority

Liquidation Periods of an LLC

The liquidation period of an LLC is from 2 months

All actions for closing an LLC are carried out officially in accordance with the current legislation of the Republic of Kazakhstan, where there are standard terms for each stage. The service is carried out within these terms and, unfortunately, it is impossible to speed them up.

Documents required for liquidation of LLP:

Publication in a legal newspaper
Constituent documents
Charter
Document confirming payment to the State Corporation “Government for Citizens” for deregistration of a branch (representative office) of a legal entity that is a commercial organization
Liquidation balance
Certificate of destruction of the seal
Certificate of closing of accounts

Liquidation of LLP is a serious process that requires precision, attention to detail and knowledge of the law. In this process, it is important to correctly go through all the stages in order to avoid legal consequences and possible financial losses.

The KORGAN law firm is ready to provide assistance at every stage of this process, providing competent support and assistance in the preparation of all necessary documents.

Contact our specialists by phone +7 700 50 00 553 or click on the “order a call” button below.

Author of the article: Kenzhemergenova M.N.