Letter of Guarantee Exceptional Chronicle
Shehata & Partners defended Arco Steel against Korean steel giant Posco’s procedural tactics in a dispute worth USD 14 million. In November 2000 both Arco Steel and Posco entered in a USD 140 million agreement to establish a steel manufacturing factory in Egypt. As part of the agreement, Posco issued a letter of guarantee with an amount of USD 14 million in favor of Arco Steel, to serve as a performance guarantee. However, upon delivery, the factory was found to be noncompliant with the agreed technical criteria. An ICC arbitration arose between both corporate entities.
Dream Land Group
Historical & Complex Banking Saga
Representing one of the most fought-out legal battles in recent history before Egyptian courts, Shehata & Partners would not have been able to pull off this victory with every trick in the textbook, but had to resort to innovating and creating original procedural tactics and substantive arguments outside of the box on a continuous basis. Having lost the USD 250 million CRCICA award (the “Award”) and failing to nullify the Award before the Cairo Court of Appeal, thus leaving only an extremely slim chance that any law firm could help at such a late stage, Dream Land Group hired Shehata & Partners.
The Solar Company
Launching an Innovative Solar Product
Shehata & Partners has always been considered one of the few law firms with rich experience in the field of solar energy in Egypt. With a strong grasp of the peculiars of the technical and regulatory issues surrounding this sector, The Solar Company assigned our firm to draft a contract that would be well suited for their innovative product in the Egyptian market. A contract that captured all the attributes of the new product was devised within a few days due to Shehata & Partners’ awareness of the spectrum of the solar industry and extensive legal experience.
Suez Canal for Educational Services
Repurchase Agreements “Repos” Ground-Breaking Precedent
Shehata & Partners has successfully represented one of the shareholders in Suez Canal for Educational Services in his 13-year battle to vindicate his rights against the Suez Canal Bank. In 2001 a shareholder in Suez Canal for Educational Services entered into a repurchase agreement with Suez Canal Bank. The agreement stated that the client would sell a certain amount of his shares at approximately USD 3 million, but would be entitled to repurchase these shares within 6 months for a slightly higher price. Unfortunately, unexpected economic events made the repurchase impossible within the set time.
Altering the Courts’ Uniform Approach towards Conflict of Interest in Arbitration
With respect to the issue of impartiality and independence of arbitrators, Shehata & Partners was again successful in setting a precedent before the Egyptian Highest Courts. This case was the first time in the Egyptian Court of Cassation that any arbitral award was annulled on the ground of partiality of one of the arbitrators, and the second time that a CRCICA arbitral award got fully annulled. When Europe 2000 were unable to collect their dues from the Cairo Cleaning and Beautification Authority in their CRCICA arbitration, Shehata & Partners was hired to annul the award in order to have a second shot against the Cairo Cleaning and Beautification Authority.