LLF and Alex Passo Secure Huge Win For Ukrainian Client Against Company Using The War As Cover For Breach of Contract
The war in Ukraine is an unspeakable tragedy on many levels. In addition to the human costs, the invasion also threatened the country’s booming and well-respected technology sector that attracted clients from all over the world. Despite the war’s travails, the perseverance and resilience of Ukraine-based tech companies allowed them to continue serving their clients without disruption or diminished service.
Recently, Latimer LeVay Fyock attorney Alex Passo had the privilege of representing one of those Ukrainian tech companies, securing a six-figure settlement against a client that had tried to use the war as an excuse to get out of its contractual obligations and steal the company’s workers.
LLF’s client, Brightgrove, is a Ukrainian software programming firm that is one of the largest programming outsourcing companies in the world. In 2013, Brightgrove was retained by a U.S.-based client to assemble a dedicated team of developers who would be assigned to provide services to the client. Under the contract between the parties, the client was to pay Brightgrove a monthly fee per developer. Additionally, pursuant to a 2019 amendment to the agreement, the client agreed to pay Brightgrove for the transfer of the team to the client in the event that it terminated the contract and elected to retain the team directly.
After almost ten years of providing such services and four months after the invasion, the client, for the first time ever, expressed dissatisfaction with the services Brightgrove was providing and claimed that the services of the dedicated team were interrupted due to the war. Pursuant to the contract, and well before the war started, Brightgrove had developed a business interruption plan to " mitigate” any interruptions due to a force majeure event, such as a war. With that plan in effect, Brightgrove continued providing undiminished services to its client.
Nevertheless, the client notified Brightgrove in June 2022 that it was terminating the contract and demanded that Brightgrove transfer the team without paying
Brightgrove the transfer fee agreed to in the contract. Brightgrove, understandably, rejected this demand. The client then surreptitiously circumvented Brightgrove and employed the dedicated team members anyway without paying the transfer fee.
Brightgrove saw the client’s actions for what they were – an attempt to use the war as an excuse to get out of its contractual obligations, notwithstanding Brightgrove’s full performance of its responsibilities.
In November 2022, LLF filed an arbitration action on behalf of Brightgrove with the International Chamber of Commerce. The action resulted in LLF obtaining a six-figure settlement for Brightgrove, rebuking its client’s efforts to exploit the tragedy of the war for its own advantage.
The firm congratulates Alex Passo for his work on this matter and was proud to represent this Ukrainian client during this difficult and trying time for their country.
