Luka Bar was physically unable to generate income from transshipment of other goods due to the storage of 80,000 tons of bauxite, occupying a third of the bulk cargo space, in 2022, a year when the port achieved record results. Due to numerous inquiries that could not be answered, Luka suffered losses, as it could have earned more than €250,000 per month from the transshipment of other cargo, said Luka Bar’s Executive Director Ilija Pješčić during his testimony before Judge Nina Jovović at the Commercial Court in a lawsuit filed by the Polish company “Bumech”.
The Poles are seeking a ruling that they are not obligated to pay Luka Bar €6.9 million for storing the bauxite, claiming that Luka Bar illegally carried out an out-of-court sale to collect part of the debt. Luka Bar sold the bauxite for €2.8 million after a failed first attempt to sell it for €4.8 million. Luka responded to the lawsuit with a counterclaim for the remaining debt of €4.1 million.
Chronology of events
During the three-hour hearing, in addition to Pješčić, Andrzej Buczak, who was the director of “Bumech” at the time of the dispute, also testified. Various issues were raised, including the contract itself, its contents, the obligations arising from it, and who was responsible for paying storage fees after the free period expired.
The bauxite, as revealed during the hearing, was initially owned by Uniprom Metals, which, under an agreement with Luka Bar, could store it for free until December 31, 2021. Representatives of “Bumech” met with Luka Bar in November 2021, where they stated their intention to purchase Uniprom’s business and take ownership of the 80,000 tons of bauxite. Luka Bar agreed to the same terms that Uniprom had, according to Pješčić. On December 23, 2021, “Bumech” sent a signed contract, but it wasn’t until March 1, 2022, that they received a signed version from Luka Bar, which Buczak claims was different, while Pješčić says the changes were not significant. They also received invoices for storage in January and February.
The communication was primarily conducted via email, and Uniprom confirmed that the bauxite now belonged to “Bumech.” The problem arose when the free storage period expired at the end of 2021, leading to the question of who would cover the storage costs.
Buczak claimed they had already paid Uniprom for the bauxite, and the agreement covered all costs up to the loading of the goods onto the ship once they found a buyer, thus disputing the obligation to pay Luka Bar for storage. Meanwhile, “Bumech” sold the bauxite to another company, “Traxis,” but this company also did not take possession of the bauxite.
There were attempts to transfer the bauxite in December, but Luka Bar could not provide the necessary berth for the ship, which led to the request for a new date for the transfer in the latter half of December. Pješčić testified that in March 2022, they were informed by “Traxis” that they had purchased the bauxite from “Bumech” under the same terms as those agreed upon with Uniprom, and they too were not obligated to pay storage fees.
Since “Bumech” did not pay the invoices issued by Luka Bar by the end of June, Luka sent them a request to terminate the contract. Buczak disputes the existence of the contract, claiming there are two contracts—one from December 2021, which they signed, and another from March 2022, which Luka Bar sent them but was not the same.
Impact of the pandemic
Pješčić argued that the delay in sending the contract was due to the board not meeting earlier because of the pandemic and that the contract was only a formality. He emphasized that the terms were the same as those previously agreed with Uniprom. “Bumech” lawyer Damjan Milić claimed that Luka Bar deliberately delayed the sales process, which was only finalized in August 2022, causing the debt to reach nearly €7 million, a claim Pješčić denied.
Buczak explained that they initially agreed with Uniprom to supply 80,000 tons of bauxite from Nikšić but were unable to transport it to Bar due to Uniprom’s debts to Montekargo. They then offered to take the bauxite already stored at Luka Bar. He argued that the contract with Luka was meant for future cooperation, which did not apply to the disputed 80,000 tons of bauxite already stored at the port and covered by an agreement with Uniprom. He also mentioned that the contract Luka sent them had a clause removed that related to future cooperation if “Bumech” bought Uniprom, which resulted in the current situation with two different contracts.
In July 2022, when they attempted to reach a settlement, Luka Bar offered “Bumech” to pay €1.4 million to take the bauxite, but “Bumech” countered with €900,000, which, according to Pješčić, they could not accept as it would involve criminal liability.
When Luka Bar’s lawyer, Vera Vučelić-Radunović, asked why they stopped communicating with Luka Bar and did not respond to their emails, Buczak stated that they had sent the signed contract and that it was normal business practice to return a signed contract immediately, which did not happen until March 1. The offer to pay €900,000 was made at the suggestion of “Traxis,” with whom they were supposed to jointly buy Uniprom.
The next hearing, where three more witnesses are scheduled to testify, has been set for March 21.
