Kartik Mittal, Stephanie Limaco and Josh Dickinson successfully acted for an overseas client in an international arbitration against a Singapore-based financial services provider. Following the client’s OFAC designation, the Singapore company terminated the contract and withheld more than $4.1 million due to our client, claiming that sanctions prevented payment.
Zaiwalla initiated the Singapore International Arbitration Centre (SIAC) claim and secured a final award ordering the payment of the full amount withheld, together with contractual interest and over 90% of costs in our client’s favour.
The Tribunal rejected the counterparty’s arguments that US sanctions made the payment illegal or impossible, also accepting Zaiwalla’s position that the payment could be structured compliantly under the contract and applicable laws, accepting expert evidence on lawful payment routes despite sanctions. It also found that payment in specified jurisdictions did not necessarily involve performance in the US as the payment could be structured to avoid the US financial system.
Businesses facing sanctions-related challenges often encounter counterparties seeking to delay or avoid payment. Our sanctions team help clients navigate these complex issues, identify legally compliant routes to recovery, and successfully enforce their contractual rights across multiple jurisdictions
