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CISG Article 78: Endless disagreement among
commentators, much less among the courts

Francesco G. Mazzotta
July 2004

Appendix 12

RUSSIAN FEDERATION

1. Tribunal of International Commercial Arbitration at the Russian Federation Chamber of Commerce and Industry, April 15, 1994, available at <http://cisgw3.law.pace.edu/cases/940415r1.html>.

Original language:     
Translation:
Russian
Unavailable

Unilex abstract:

"The buyer, with reference to Art. 81(2) CISG, had also claimed restitution of the sum paid as the price of the goods under the contract. With reference to Art. 78 and Art. 84(1) CISG the buyer had claimed interest on the price to be refunded. The Tribunal decided in favor of the buyer and ordered the seller to refund the price paid for the goods and to pay interest on this sum at the rate established by the law of the buyer's country. The time period within which interest was to be paid was determined as starting from the date of the payment of the price of the goods until the actual date payment of the debt."

2. Tribunal of International Commercial Arbitration at the Russian Federation Chamber of Commerce and Industry, September 9, 1994, available at <http://cisgw3.law.pace.edu/cases/940909r1.html>.

Original language:     
Translation:
Russian
Unavailable

Unilex abstract:

"The Tribunal also awarded, on the basis of Art. 78 CISG, interest on all the sums the seller owed at the rate provided for by the law of the seller's country."

3. Tribunal of International Commercial Arbitration at the Russian Federation Chamber of Commerce and Industry, November 17, 1994, available at <http://cisgw3.law.pace.edu/cases/941117r1.html>.

Original language:     
Translation:
Russian
Unavailable

4. Tribunal of International Commercial Arbitration at the Russian Federation Chamber of Commerce and Industry, April 24, 1995, available at <http://cisgw3.law.pace.edu/cases/950424r1.html>.

Original language:     
Translation:
Russian
Unavailable

5. Tribunal of International Commercial Arbitration at the Russian Federation Chamber of Commerce and Industry, April 28, 1995, available at <http://cisgw3.law.pace.edu/cases/950428r1.html>.

Original language:     
Translation:
Russian
Unavailable

6. Tribunal of International Commercial Arbitration at the Russian Federation Chamber of Commerce and Industry, May 15, 1995, available at <http://cisgw3.law.pace.edu/cases/950515r1.html>.

Original language:     
Translation:
Russian
Available

Court (translation):

"As for the claimant [seller]'s demand for interest on the debt at an annual rate of 10 percent, the Tribunal found this claim justified and based on para. 9 of the contract. In the course of the arbitration proceedings, the claimant [seller] specified the date of the beginning of the period of the delay in payment and, therefore, the date from which the interest on the sum of the debt shall be reckoned. This date is understood as the date of rendering the invoice in the bank of the [respondent] buyer. The Tribunal awarded interest at an annual rate of 10 percent starting from 8 June 1992 till the execution of the payment."

7. Tribunal of International Commercial Arbitration at the Russian Federation Chamber of Commerce and Industry, December 1, 1995, available at <http://cisgw3.law.pace.edu/cases/951201r1.html>.

Original language:     
Translation:
Russian
Unavailable

8. Tribunal of International Commercial Arbitration at the Russian Federation Chamber of Commerce and Industry, December 13, 1995, available at <http://cisgw3.law.pace.edu/cases/951213r1.html>.

Original language:     
Translation:
Russian
Unavailable

9. Tribunal of International Commercial Arbitration at the Russian Federation Chamber of Commerce and Industry, December 19, 1995, available at <http://cisgw3.law.pace.edu/cases/951219r1.html>.

Original language:     
Translation:
Russian
Unavailable

10. Tribunal of International Commercial Arbitration at the Russian Federation Chamber of Commerce and Industry, January 31, 1996, available at <http://cisgw3.law.pace.edu/cases/960131r1.html>.

Original language:     
Translation:
Russian
Unavailable

11. Tribunal of International Commercial Arbitration at the Russian Federation Chamber of Commerce and Industry, February 10, 1996, available at <http://cisgw3.law.pace.edu/cases/960210r1.html>.

Original language:     
Translation:
Russian
Available

Court (translation):

"The [buyer] claims annual interest at the rate of LIBOR + 2% from the date of filing the counteraction. Since the counteraction was filed after the first part of the Civil Code of the Russian Federation had come into force, the Tribunal is guided by the Article 395 of this Code when resolving this issue. The Tribunal believes that the annual interest shall be awarded at the rate of LIBOR on the date of this judgment, without the extra 2% charge from the date of filing of the counteraction ... to the date of payment, because the [buyer] has not presented any evidence which can serve as a ground for such extra charge."

12. Tribunal of International Commercial Arbitration at the Russian Federation Chamber of Commerce and Industry, March 12, 1996, available at <http://cisgw3.law.pace.edu/cases/960312r1.html>.

Original language:     
Translation:
Russian
Available

Court (translation):

"Taking into account the aforesaid, as well as the calculations provided by the [buyer] on separate sums of [buyer]'s claims and proof of their amounts, contained in the case materials, the Tribunal considered it possible to grant the following claims of the [buyer]:

....

-    annual interest for the period until 31 December 1994 (inclusive) on the basis of Article 66(3) of the Fundamentals of Civil Legislation of the USSR 1991."

13. Tribunal of International Commercial Arbitration at the Russian Federation Chamber of Commerce and Industry, March 12, 1996, available at <http://cisgw3.law.pace.edu/cases/960312r2.html>.

Original language:     
Translation:
Russian
Unavailable

14. Tribunal of International Commercial Arbitration at the Russian Federation Chamber of Commerce and Industry, April 25, 1996, available at <http://cisgw3.law.pace.edu/cases/960425r1.html>.

Original language:     
Translation:
Russian
Unavailable

15. Tribunal of International Commercial Arbitration at the Russian Federation Chamber of Commerce and Industry, September 18, 1996, available at <http://cisgw3.law.pace.edu/cases/960918r1.html>.

Original language:     
Translation:
Russian
Unavailable

16. Tribunal of International Commercial Arbitration at the Russian Federation Chamber of Commerce and Industry, September 26, 1996, available at <http://cisgw3.law.pace.edu/cases/960926r1.html>.

Original language:     
Translation:
Russian
Available

Court (translation):

"3.3.3 [Recovery of the interest for bank loan paid by the buyer]

The [buyer] proved that it had used the loan from the Danish bank and paid in average 12% of the annual interest for the loan. The Tribunal held that the sum paid by the [buyer] to the bank constituted losses of the [buyer], thus, under Article 74 CISG, [buyer] had to be compensated by the [seller] in the amount of 12%, of the granted principal sum of the debt.

3.3.4 [Recovery of the annual interest for delay in shipment]

The Tribunal denied the [buyer]'s claim as to recovery of annual interest for delay in the payment of a monetary obligation under Article 78 CISG and rules of Russian civil law, since the seller was not a debtor in connection with the monetary obligations set forth in the contract; but annual interest was to be calculated for the delay or failure to pay a monetary debt."

17. Tribunal of International Commercial Arbitration at the Russian Federation Chamber of Commerce and Industry, October 8, 1996, available at <http://cisgw3.law.pace.edu/cases/961008r1.html>.

Original language:     
Translation:
Russian
Unavailable

18. Tribunal of International Commercial Arbitration at the Russian Federation Chamber of Commerce and Industry, February 25, 1997, available at <http://cisgw3.law.pace.edu/cases/970225r1.html>.

Original language:     
Translation:
Russian
Unavailable

19. Tribunal of International Commercial Arbitration at the Russian Federation Chamber of Commerce and Industry, March 28, 1997, available at <http://cisgw3.law.pace.edu/cases/970328r1.html>.

Original language:     
Translation:
Russian
Available

Court (translation):

"The Tribunal finds it possible to grant the [seller]'s claim of 12% annual interest for the delay in payment for the goods. Since prior to institution of the action, the [seller] did not claim annual interest from the [buyer], the Tribunal has reached the conclusion that annual interest shall be paid on the principal sum of debt under the contract starting on the date of filing the action. As to the other amounts claimed for recovery from the [buyer], annual interest on them shall be awarded starting from the date of rendering of the present decision. In holding that the [buyer] shall pay 12% annual interest, the Tribunal took into account the following. The party's obligation to pay interest in case of delay in payment of the price is directly stated in Article 78 CISG. Since the interest rate is not set forth in the Convention and since it cannot be determined in conformity with general principles pursuant to Article 7(2) CISG, the provisions of the Russian laws shall apply. Under Article 395 of the Civil Code of the Russian Federation, in case of delay of performance of money obligations, annual interest shall be recovered in the amount of the bank discount interest rate at the place of creditor's location. The [seller]'s claim of 12% annual interest does not exceed the interest rate used for short-term hard currency loans in Russia."

20. Tribunal of International Commercial Arbitration at the Russian Federation Chamber of Commerce and Industry, April 11, 1997, available at <http://cisgw3.law.pace.edu/cases/970411r1.html>.

Original language:     
Translation:
Russian
Available

Court (translation):

"The Tribunal decided to grant the [seller]'s claims as to recovery from the [buyer] of the annual interest for using [seller]'s money calculated over the sums of delayed payments according to the calculation presented in the statement of action for the whole period of delay until the date of institution of the action. The reasonableness of this calculation of annual interest is proved by the article in the official reporter on the average banking rate for given loans on the day of institution of the action of one of the leading UK banks that serves the [seller]. The Tribunal did not grant the [seller]'s motion to employ the interest rate on the day of rendering of the judgment rather than on the day of institution of the action. By so deciding, [the Tribunal] took into attention that the question as to which rate should be employed in case of judicial recovering of the debt on the grounds of Article 395 of the Russian Federation Civil Code is left for the court's discretion."

21. Tribunal of International Commercial Arbitration at the Russian Federation Chamber of Commerce and Industry, May 29 1997, available at <http://cisgw3.law.pace.edu/cases/970529r1.html>.

Original language:     
Translation:
Russian
Unavailable

22. Tribunal of International Commercial Arbitration at the Russian Federation Chamber of Commerce and Industry, June 4, 1997, available at <http://cisgw3.law.pace.edu/cases/970604r1.html>.

Original language:     
Translation:
Russian
Unavailable

23. Tribunal of International Commercial Arbitration at the Russian Federation Chamber of Commerce and Industry, November 6, 1997, available at <http://cisgw3.law.pace.edu/cases/971106r1.html>.

Original language:     
Translation:
Russian
Unavailable

24. Tribunal of International Commercial Arbitration at the Russian Federation Chamber of Commerce and Industry, January 16, 1998, available at <http://cisgw3.law.pace.edu/cases/980116r1.html>.

Original language:     
Translation:
Russian
Available

25. Tribunal of International Commercial Arbitration at the Russian Federation Chamber of Commerce and Industry, January 22, 1998, available at <http://cisgw3.law.pace.edu/cases/980122r1.html>.

Original language:     
Translation:
Russian
Unavailable

26. Tribunal of International Commercial Arbitration at the Russian Federation Chamber of Commerce and Industry, February 18, 1998, available at <http://cisgw3.law.pace.edu/cases/980218r1.html>.

Original language:     
Translation:
Russian
Available

Court (translation):

"Having discussed the [seller]'s claim concerning recovery from the [buyer] of the annual interest for use of the [seller]'s money, the Tribunal held that this claim should be granted on the basis of Article 78 CISG. The interest rate should be determined in accordance with Article 395 of the Civil Code of the Russian Federation. However, since the [seller] did not present evidence that the [buyer] had received his invoices, these invoices are deemed to be received by the [buyer] on 27 January 1997 (according to the notice of the ELSI postal service on the acknowledgement of receipt), i.e., on the day of serving on the [buyer] the [seller]'s statement of action with all the attachments which it included, inter alia, the invoices mentioned above. Whereas in accordance with clause 2 of the contract the payment must be made five days after the receipt of the invoice by the buyer, thus the date from which the [buyer]'s obligation to pay the price arose, should be considered 2 February 1997. Therefore, the [buyer] should pay annual interest for use of [seller]'s money from 2 February 1997 up to the date of factual payment, according to the loan rate specified in the report of one of the leading banks at the place of whereabouts of the [seller] on the day the Tribunal's ruling is rendered."

27. Tribunal of International Commercial Arbitration at the Russian Federation Chamber of Commerce and Industry, March 5, 1998, available at <http://cisgw3.law.pace.edu/cases/980305r2.html>.

Original language:     
Translation:
Russian
Available

Court (translation):

"Based on Art. 78 of the CISG, [buyer] demanded recovery of the annual interest on the sum of the principal debt and on the sum of the damages suffered, however the [buyer] failed to calculate the sum of the interest to be recovered from [seller], as required by para. 16 of the Rules of the Tribunal, and failed to pay the appropriate arbitration fee relating to the interest. For this reason, the Tribunal left this claim without consideration."

28. Tribunal of International Commercial Arbitration at the Russian Federation Chamber of Commerce and Industry, March 11, 1998, available at <http://cisgw3.law.pace.edu/cases/980311r1.html>.

Original language:     
Translation:
Russian
Available

Court (translation):

"Since the contract provided for the application of the law of the seller, the relations between the parties not covered by the contract must be regulated by Russian law and the Vienna Convention 1980 as the part of the Russian Federation's legal system because the Russian Federation is a party to the Vienna Convention and, according to Article 1(1)(b), its provisions are applicable to the above mentioned sales contract.

....

According to Article 78 of the Vienna Convention 1980, the [seller] is entitled to interest on sums in arrears. In accordance with Article 395 of the Russian Federation Civil Code, the interest rate is determined on the basis of the place of the [seller]-creditor's banking rate on the date of the fulfillment of the pecuniary obligation; also the creditor's claim may be satisfied on the basis of the banking rate on the date of bringing of the claim or of delivering of the judgment. The case materials contained a report issued by one of the leading Russian banks on 14 November 1996 in which the bank reports the average rates for credits in foreign currency. Bearing in mind that the [seller] based his calculation on the minimal rate and that he had the right to claim the recovery of the interest till the moment of the actual payment of the sum in question but limited himself to the sum determined on the date preceding the date of bringing of the claim and that the calculation was supported by case materials, [seller]'s claim for the recovery of the interest must be satisfied."

29. Tribunal of International Commercial Arbitration at the Russian Federation Chamber of Commerce and Industry, March 25, 1998, available at <http://cisgw3.law.pace.edu/cases/980325r1.html>.

Original language:     
Translation:
Russian
Available

Court (translation):

"The Vienna Convention 1980 is applicable to the relations between the parties (Article 1(1)(a)). The issues not covered by the Convention are regulated by the law determined on the basis of the rules of international private law (Article 7). Since the parties did not determine which law must be applied to their relations the Tribunal pursuant to Article 28 of the Law of the Russian Federation on the Tribunal of International Commercial Arbitration when choosing the applicable law, based [its decision] on Article 166 of the Fundamentals of Civil Law [USSR] of 1991. According to this rule, the law that must be applied is the law of the country of seller, where the seller to the sales contract is established or has the main place of business, i.e., Bulgarian law in this case.

....

According to Article 78 of the Vienna Convention 1980, if a party fails to pay the price in time, the other party is entitled to recover interest on the sum in arrears. The [seller] claims the sum which constitutes the annual rate of 5% of the sum of principal debt from 1 January 1995 till 31 December 1996. In his letter of 10 February 1998, the [seller] bound himself to justify the interest rate that he claims in the Tribunal hearing. But during the hearing his representative was absent. No written explanations on the interest rate calculated according to Bulgarian legislation were produced [by the seller]. Taking into account the fact that the annual rate of 5% which the [seller] claims does not exceed the LIBOR rate usually applicable in international trade relations, the Tribunal found it possible to grant the [seller]'s claim.

....

The Tribunal granted the claim concerning recovery of the annual interest until the complete recovery of the principal debt from the date of delivery of the judgment till the date of payment of the sum of principal debt at the annual rate of 5%."

30. Tribunal of International Commercial Arbitration at the Russian Federation Chamber of Commerce and Industry, April 4, 1998, available at <http://cisgw3.law.pace.edu/cases/980404r1.html>.

Original language:     
Translation:
Russian
Unavailable

Unilex abstract:

"The arbitration tribunal held the right of the seller to interest on the overdue sum on the ground that interest could not be regarded neither as penalties nor like damages according to Art. 78 CISG under which the creditor is entitled to interest, without prejudice to any claim for damages recoverable under Art. 74 CISG."

31. Tribunal of International Commercial Arbitration at the Russian Federation Chamber of Commerce and Industry, May 25, 1998, available at <http://cisgw3.law.pace.edu/cases/980525r1.html>.

Original language:     
Translation:
Russian
Unavailable

32. Tribunal of International Commercial Arbitration at the Russian Federation Chamber of Commerce and Industry, June 10, 1998, available at <http://cisgw3.law.pace.edu/cases/980610r1.html>.

Original language:     
Translation:
Russian
Available

Court (translation):

"Since there is no agreement on the applicable law between the parties, the Tribunal pursuant to Article 28 of the Federal Law "On international commercial arbitration" determines the applicable law in accordance with Russian rules of private international law. At the time of the conclusion of the contract, Article 566 of the Civil Code of the Russian Soviet Federal Socialist Republic 1964, which was in force at that time, provided that the rights and obligations of the parties to foreign economic contract are determined under the laws of the place of its conclusion if the parties did not agree otherwise. Since the contract out of which the dispute arose was concluded in Moscow, the relations of the parties are governed by Russian material law. That is why pursuant to Article 1(1)(b) of the Vienna Convention 1980, the relations between of the parties are also governed by the provisions of this Convention which under Article 15 of the Constitution of the Russian Federation prevail over the corresponding provisions of Russian law.

....

Under Article 78 of the Vienna Convention 1980, if a party fails to pay the price, the other party is entitled the interest on it. Since the Convention does not fix the interest rate, it is to be determined in conformity with the law applicable by virtue of the rules on of private international law. Referring to Article 395 of the Civil Code of the Russian Federation the [seller] claims to exact the interest for the years 1994, 1995, 1996 and for the first quarter of the year 1997. But the sum of the interest claimed by the [seller] is not in conformity with the applicable rules or Russian law. First, the Civil Code of the Russian Federation was not in force in 1994 since it came into force only on 1 January 1995. That is why during the year 1994 must be applied the 5% rate fixed by Article 66(3) of the Fundamentals of Civil Law 1991 which were in force at that time in Russia. Second, under Article 395 of the Civil Code of the Russian Federation for the delay in subsequent years, the interest rate is determined on the basis of the bank discount rate at the creditor's place of residence. However, the [seller] applied the rate existing on 11 March 1997 and at the debtor's (not the creditor's) place of residence. Afterwards the [seller], in response to the panel's proposal to submit the evidence proving the rate applicable to the sums in arrears fixed in USD, produced a certificate of 18 April 1998 signed by the manager of a Pakistani bank and stating that under the rules of the State Bank of Pakistan short-term credits are not granted in USD and that the Government of Pakistan permits short-term financing in Pakistani rupees. In this situation, the Tribunal considered it possible to apply the LIBOR rate, habitually applied in international trade, on the date of the hearing. Under the contract, this sum must be converted into Pakistani rupees. Article 8 of the contract provides that payments for the delivered goods are effected in Pakistani rupees by means of submitting account numbers for collection in National Bank of Pakistan with the conversion at the rate on the date of submission of the papers to the bank. Taking into account the fact that there is no indication in the case concerning this date and that the Tribunal's decision will serve as a ground for exaction of this sum, the Tribunal, applying Article 317 of the Civil Code of the Russian Federation by analogy, considers that the sum to be paid in Pakistani rupees must be determined at the official rate of USD on the date of the actual payment."

33. Tribunal of International Commercial Arbitration at the Russian Federation Chamber of Commerce and Industry, October 2, 1998, available at <http://cisgw3.law.pace.edu/cases/981002r1.html>.

Original language:     
Translation:
Russian
Available

Court (translation):

"The Tribunal has found that in case of delay of payment, 55 of GTD [General Terms of Delivery USSR - People's Republic of China] provides for the payment of interest at the annual rate of 6%. Since the [seller] claimed the recovery of interest at the LIBOR annual rate of 5.4207%, which was less than 6% per annum, the Tribunal concluded that [seller]'s claim was reasonable. According to clause 4 of the contract, the [buyer] should make payment for the goods within 90 days from the date of receipt. The [buyer] with the fax of 6 June 1996 has confirmed the receipt of the last deliveries of goods on 15 February 1996. Therefore, the initial date for the calculation of annual interest is 15 May 1996. Thus, the [seller]'s claim to recover interest at the rate of 5.4207% per annum charged on the principal amount of the claim since 15 May 1996 till the day of payment is granted."

34. Tribunal of International Commercial Arbitration at the Russian Federation Chamber of Commerce and Industry, October 22, 1998, available at <http://cisgw3.law.pace.edu/cases/981022r1.html>.

Original language:     
Translation:
Russian
Available

Court (translation):

"According to Art. 78 CISG, the [seller] is entitled to interest on the sum to be paid by the [buyer]. The interest, though not specified in the CISG, is to be calculated in conformity with subsidiary applicable law, that is the Russian Federation Civil Code Article 395, which provides that the interest for the use by the [buyer] of the unlawfully kept money is to be calculated on the basis of the bank interest rate at the [seller]'s place of business. The Tribunal, thus, admits the Certificate of 21 November 1997, issued by the Cypriot Central Bank, presented by the [seller], which certifies that on the day of bringing the action before the Tribunal the interest rate amounted to 8%. The [buyer] did not contest this certificate. The Tribunal rules that this interest shall be applied at least from 1 August 1996, as the contractually fixed payment time, to 19 June 1997, i.e., when the action was brought before the Tribunal, and the [seller] duly paid the arbitration fees for his claim for recovery of interest."

35. Tribunal of International Commercial Arbitration at the Russian Federation Chamber of Commerce and Industry, July 27, 1999, available at <http://cisgw3.law.pace.edu/cases/990727r1.html>.

Original language:     
Translation:
Russian
Available

Court (translation):

"The Tribunal granted the claim of the [buyer] to recover annual interest on the granted sum of lost profit at the LIBOR rate plus 2% per annum, on the basis of Article 78 CISG and Article 395 of the Russian Federation Civil Code that refers to the rate of bank loan at the place of creditor. The Tribunal found that the mentioned rate of interest accorded to the rate which prevailed in Switzerland (place of [buyer]'s company) respectively. The Tribunal has also taken into account that [seller] raised no objections regarding the issue of rate of interest."

36. Tribunal of International Commercial Arbitration at the Russian Federation Chamber of Commerce and Industry, October 6, 1999, available at <http://cisgw3.law.pace.edu/cases/991006r1.html>.

Original language:     
Translation:
Russian
Available

Some references, but nothing interesting.

37. Tribunal of International Commercial Arbitration at the Russian Federation Chamber of Commerce and Industry, January 25, 2001, available at <http://cisgw3.law.pace.edu/cases/010125r1.html>.

Original language:     
Translation:
Russian
Available

Court (translation):

"As to the [Seller]'s claims to recover from the [Buyer] penalties for the delay in payment as well as annual interest for the use of another's funds, the Tribunal found that the [Buyer] committed a breach which gives the [Seller] a right to claim such recovery in accordance with the contract. At the same time, when resolving this issue, the Tribunal took into consideration the following.

Taking the above into consideration, the Tribunal came to the conclusion that the [Seller] could recover only annual interest provided for in the contract. [Such annual interest can be recovered] in the amount stated in the claim."

38. Tribunal of International Commercial Arbitration at the Russian Federation Chamber of Commerce and Industry, June 6, 2000, available at <http://cisgw3.law.pace.edu/cases/000606r1.html>.

Original language:     
Translation:
Russian
Available

Court (translation): "Concerning the [buyer]'s claim for annual interest based on Article 395 of the Russian Federation Civil Code, the Tribunal holds that the [buyer] did not satisfy the requirements of that Article, inter alia, the [buyer] did not provide to the Tribunal the rates of annual interest at the creditor's place of business and the period for which the interest should be calculated that would have allowed the Tribunal to evaluate the [buyer]'s claim. Accordingly, the [buyer]'s claim for interest has to be denied."

39. Tribunal of International Commercial Arbitration at the Russian Federation Chamber of Commerce and Industry, July 30, 2001, available at <http://cisgw3.law.pace.edu/cases/010730r1.html>.

Original language:     
Translation:
Russian
Available

Court (translation):

"When reviewing the [Seller]'s claim to recover annual interest, the Tribunal considered the following circumstances. Pursuant to Article 78 CISG, if a party fails to pay the purchase price or any other sum, the other party is entitled to interest on it. Since Article 78 does not set forth the exact interest rate, then, as stated above, the law of Italy should apply.

The [Seller] presented an affidavit of 2 May 2001 certified by A.M., a notary public from the city of Milan. It follows from the affidavit that, in accordance with Article 1224 of the Civil Code of Italy, interest on the sum in arrears should be determined based on the parties' agreement. In the absence of such agreement, the rate set forth in the law should apply. From 30 September to 31 December 1998 the annual interest rate in Italy was 5%. From 1 January 1999 to 31 December 2000 the annual interest rate was 2.5%. From 1 January 2001 the annual interest rate has been 3.5%.

Thus, annual interest should be recovered for the period from 30 September 1998 to 25 May 2001. In addition, annual interest at the rate of 3.5% should be paid on the sum in arrears from 26 May 2001 to the date of factual payment.

When calculating the amount of interest, the Tribunal took into consideration that the [Buyer] made no objections in connection with the periods of time for which interest was calculated as well as in connection with the interest rate.

Taking into consideration the partially sustained claim of the [Seller] reduced by the amount of interest incorrectly calculated, in accordance with Article 6(2) of the Regulations on Arbitration Expenses and Fees, the [Buyer] should pay the [Seller]'s arbitration expenses in the amount proportionate to the sustained claims."

40. Tribunal of International Commercial Arbitration at the Russian Federation Chamber of Commerce and Industry, November 28, 2001, available at <http://cisgw3.law.pace.edu/cases/011128r1.html>.

Original language:     
Translation:
Russian
Available

Court (translation):

"The Tribunal found reasonable the claim of [Seller] to compensate him for losses arisen in connection with payment of interest for credit to the bank due to delay of payment by [Buyer] since it is confirmed by relevant banking documents and should be granted on the basis of Art. 74 CISG.

The Tribunal also found reasonable the claim of [Seller] to recover interest according to Art. 78 CISG and para. 352 of the German Commerce Code since it is proved by relevant calculations and thus should be granted.

The Tribunal left without consideration the claims to recover annual interest in the amount of 9 percent of the principal debt from 1 June 2001 to the day of payment, and also 5 percent of the principal debt from 1 June 2001 to the day of payment since they were not covered by the arbitration fees as is required by para. 18 of the Rules of Tribunal."

SUMMARY

Cases involving Article 78: 40
Cases for which an English translation/text is available: 19
Cases for which only an abstract was available: 3
Cases for which neither translation nor abstract was available: 18


Pace Law School Institute of International Commercial Law - Last updated November 15, 2004
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