Impartiality of Arbitrators in Egypt – Court of Cassation Update

  • Posted

Challenge No. 18116 / Judicial Year No. 88 – Hearing Dated 11 June 2019

Parties:

Claimant: Europe 2000 for Waste Collection & Managment Services

Defendant: Cairo General Authority for Cleanliness and Beautificatiton & Cairo Governorate

Summary of the Case:

The Egyptian Court of Cassation has annulled a CRCICA arbitral award n the basis of the impartiality of one of the arbitrators. The Court found that the arbitrator in question was in fact biased as he has already provided a formal legal opinion to both defendants, namely, Cairo General Authority for Cleanliness and Beautification & Cairo Governorate. Additionally, the challenged arbitrator has not disclosed these facts when accepting his arbitration appointment. In this regard, the Court defined the standard of impartiality and independence of arbitrators by stating that:

“The Arbitrator’s independence and impartiality means that the arbitrator has no implicit, material, or moral relation to any of the parties in a way that affects such impartiality and constitutes a flagrant & imminent threat (“real danger of bias“) , or raise “justifiable doubts“.”

Accordingly, the Court of Cassation has held that the arbitrator’s actions have evidenced the bias of the arbitrator and therefore has deemed the challenged arbitral award as null and void.

For a copy of the original judgment in Arabic or a translation in English, please contact us at info@shehatalaw.com