On the 1st of March 2021, the Litigation team of Shehata & Partners in conjunction with the Italian law firm Pavia e Ansaldo were able to push for a favourable amicable settlement to our Client, an Italian agricultural giant. The Client engaged with Shehata & Partners and after months of trying to reach a settlement or to obtain a favourable judgment of an un-recoverable multi-million Euros debt.

When weighing the effects of the Adversary’ actions on the Client’s business, it was apparent to Shehata & Partners that an amicable solution was still possible. Yet, it would only be reached by devising a different tactic and strategy. In application, the litigation team pushed the Adversary into a ‘legal purgatory‘ with both criminal and civil litigations on the horizon. This simple tactic opened the door for the Adversary to agree to a full, un-disputed, amicable settlement.

Contrary to public belief about dispute resolution teams, and much to our appeal, a settlement is always favoured when a threat to future business and relations is looming on the horizon. We at Shehata & Partners believe that it is unnecessary to harm such existing relations especially if the parties are of the few major players in their industries. Our litigation partner, Mr. Mohamed Osama Abdelwahab, in favour of such an approach, has indicated that:

“We cannot assume that any market player would be happy with financial gains over shattered business relations and a damaged reputation. Whenever the opportunity arises, we must advise on seeking – and even forcing – an amicable settlement. People may reconcile beyond financial loss, but they rarely do so when their relations are severed.”

For more information on this settlement, and when should you seek settlement for your commercial dispute, please contact Mohamed Osama Abdelwahab at os@sheahtalaw.com.