VSMPO-Tirus U.S. Inc., a North American distributor for one of the world’s largest titanium manufacturers, has filed a petition in the U.S. District Court for the District of Colorado to enforce a $3.6 million arbitral award against Italian supplier Cap.Co. SRL. The enforcement action follows a breach of contract dispute related to challenges caused by the Russian invasion of Ukraine.
VSMPO-Tirus U.S. Inc. asserts that Cap.Co. SRL failed to honor the terms of a sales agreement for 2,400 metric tons of ferro titanium (“FeTi”), manufactured by Russian titanium giant VSMPO-AVISMA. The dispute arose after geopolitical tensions and sanctions impacted the transportation and delivery of the titanium products.
According to the arbitration award issued by arbitrator Richard Caschette, delays in delivery were due to transportation challenges linked to the conflict in Ukraine. The award emphasized that the contract shifted the risk of such delays to the buyer, Cap.Co., which had failed to incorporate a force majeure clause in its customer contracts. Cap.Co. also ceased payments totaling $1.47 million, prompting a default notice from VSMPO-Tirus.
The final award, confirmed under the New York Convention and amended to correct a computational error, includes $3,299,306 in damages, $316,394 in costs and attorney fees, plus interest and reimbursed compensation to the arbitrator.
The case, administered by the International Centre for Dispute Resolution under the American Arbitration Association, remains pending confirmation by the Colorado federal court.
Counsel for VSMPO-Tirus includes Mark C. Willis and Anna Adams of Kutak Rock LLP, along with Natalie Shkolnik and Adam (Aari) Itzkowitz of Wilk Auslander LLP. Legal representation for Cap.Co. SRL is currently unavailable.
