DAB and ICC arbitration proceedings in Eastern Europe
Client: European construction company
Country: Eastern Europe
Industry: Infrastructure - roads
Our client, a European construction company, signed a three-year, €52 million contract (FIDIC Red Book) to build a motorway bypass in Eastern Europe. Major problems affected its progress with the work and the client eventually terminated the contract and sought compensation for the termination of the contract.
There were a number of hearings before both the DAB and the arbitral tribunal (ICC arbitration), where Fenwick Elliott represented the client, the claimant in these proceedings. The respondent challenged the arbitral tribunal's objections on the basis that the DAB decision had been issued late. The respondent also introduced a significant counterclaim in respect of alleged defective works.
As well as advising, drafting submissions and claims and representing the client at the DAB and subsequent ICC arbitration proceedings, Fenwick Elliott had to devise a strategy to enable the efficient resolution of the claims and counterclaims that had been raised. This included dealing as a preliminary issue with the respondent's jurisdictional objection which Fenwick Elliott convinced the arbitral tribunal to dismiss and also arguing successfully that the tribunal had no jurisdiction over the respondent's counterclaim. Fenwick Elliott also managed to obtain for the client a partial award in excess of €12 million in respect of the employer's failure to comply with DAB decisions. That award was then enforced successfully against the employer.
The strategy devised for the client, together with the success before the DAB, enabled the client to maintain and gradually increase the pressure on the employer, leading to an overall significant return for the client.