Landmark Court Victory for Kerchanshe Trading PLC: A Triumph in Coffee Trade Dispute

Apr 8 , 2024.

In a groundbreaking arbitration case, Kerchanshe Trading PLC, based in Addis Abeba, Ethiopia, has emerged victorious against London-based Kamba Coffee Ltd, marking a significant win for the Ethiopian coffee industry. This triumph not only upholds the integrity of Ethiopian coffee but also underscores the importance of contractual obligations and adherence to quality standards in international trade.

The dispute, dating back to a contract signed on April 5th, 2023, centered around a consignment of Ethiopian Natural Arabica, Anasora Grade 1, crop 2023, totaling 2.4 metric tonnes. Kamba Coffee Ltd, based in London, alleged that the quality of the coffee received was below standard, citing discrepancies in grading parameters. However, Kerchanshe Trading PLC stood firm, maintaining that the coffee supplied adhered to contractual specifications and met the standards set by the Ethiopian government body responsible for exports.

After meticulous examination of evidence and thorough deliberation, the panel of arbitrators appointed by the British Coffee Association delivered their verdict on January 16th, 2024. The findings not only affirmed Kerchanshe Trading PLC's adherence to contractual obligations but also highlighted procedural discrepancies on the part of Kamba Coffee Ltd, including untimely initiation of arbitration proceedings.

Key findings of the arbitration include:

Contractual Compliance: The arbitration panel affirmed that Kerchanshe Trading PLC fulfilled its contractual obligations by supplying coffee of the specified grade and quality, as per the terms agreed upon in the contract.

Procedural Deficiencies: Kamba Coffee Ltd's failure to adhere to the stipulated timeline for initiating arbitration proceedings resulted in their claim being deemed time-barred, further bolstering Kerchanshe Trading PLC's position in the dispute.

Costs and Awards: In light of the findings, the arbitration tribunal ruled in favor of Kerchanshe Trading PLC, ordering Kamba Coffee Ltd to bear the costs of the arbitration, including tribunal fees and expenses.

This landmark court victory not only exonerates Kerchanshe Trading PLC of any wrongdoing but also underscores the resilience and commitment of Ethiopian coffee producers to upholding the highest standards of quality and integrity in international trade. It also serves as a testament to the efficacy of the arbitration process in resolving complex commercial disputes in a fair and impartial manner.

For Kerchanshe Trading PLC, this victory reaffirms its reputation as a trusted supplier of premium Ethiopian coffee and sets a precedent for upholding contractual agreements and industry standards in the global coffee trade. As the Ethiopian coffee industry continues to flourish, Kerchanshe Trading PLC stands poised to lead the way, backed by its unwavering dedication to excellence and adherence to ethical business practices.

PUBLISHED ON Apr 08,2024 [ VOL 25 , NO 1250]

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