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PRESS RELEASE: MBH JOINTLY WITH DR. HAFEZA HADDAD LAW OFFICE SECURES FAVORABLE JUDGEMENT FOR GOVERNMENT OF LIBYA AND FCER NULLIFYING A USD 1.2 BILLION ARBITRAL AWARD

Setting an important precedent to nullify the first major ad-hoc arbitral award rendered in accordance with the provisions of the Unified Convention for Investment of Arab Capital in Arab Countries. On 3 June 2020, Cairo Court of Appeal delivered its judgement nullifying the ad-hoc arbitral award dated 23 February 2013, initiated by Al-Kharafi and Sons Co. against the Government of Libya and others in connection with a USD 130 million real estate and touristic investment by Al- Kharafi and Sons Co. in Tripoli, Libya.

MBH, on behalf of FCER, a Company owned by Sovereign Libyan Trust Fund, jointly intervening with Dr. Hafeza Haddad Law Office, representing the Government of Libya, have successfully secured a final judgement by the Cairo Court of Appeal nullifying the ad-hoc arbitral award holding the Government of Libya and others liable to pay Al- Kharafi and Sons Co. USD 935,000,000 in addition to interest rate amounting, to date, to approximately USD 265 million.    

The annulment action adjudicated before Egyptian Court of Appeal was initiated in 2013 and dismissed twice, in February 2014 and August 2018, with both rulings overturned by the Egyptian Court of Cassation which referred the case back to different circuit of the Cairo Court of Appeal to re-adjudicate the case, leading to the recently issued judgement.

With the full support of Matouk Bassiouny and Hennawy Dispute Resolution Group, the team handling the case consists of John Matouk, Dr. Mohamed Shehata, Momen Rezk and Reda Morsi.

On this occasion, we would like to congratulate and thank our colleagues representing the Government of Libya, Dr. Hafeza Haddad and Mr. Ahmed Al Koseffy.

 

For further press related inquiries please contact Mary Harding (mary.harding@matoukbassiouny.com).