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CRCICA Recent Caseload: Construction Cases rank on top in the second quarter of 2016

The total number of arbitration cases filed before CRCICA until 30 June 2016 reached 1109 cases. In the second quarter of 2016, 23 new arbitration cases were filed compared to 12 cases filed in the same quarter in 2015. CRCICA’s caseload in the second quarter of 2016 involved disputes relating to Construction, Sale and Purchase of Shares, Lease Agreements, Partnership Agreements, Joint Venture Agreements, Settlement Agreements, Services, Media and Entertainment, Real Estate, Hotel Management, Agency Agreements and Telecommunications.

Construction cases rank on top of the cases filed during the second quarter of 2016 with 10 cases. The first case related to a contract concluded for constructing a hospital owned by a charitable organization in Sixth of October City, Giza. The contract out of which the second case has arisen was concluded between a contractor and an employer in relation to the execution, completion and remedy of defects of the structural Package of a well-known Hotel in Cairo. The third construction case related to the implementation of a number of pumping stations located in Abu Hummus Centre, El Beheira governorate in Egypt. The fourth construction case related to a contract for the completion of a multi-store underground car park in Cairo. The Fifth construction case related to the performance of civil and electrical works for calcium carbonate plant in Minya governorate in Egypt. The contract out of which the dispute in the sixth construction case has arisen is relating to the renovation of the balconies of the western facade and the central air conditioning in a well-known hotel in Alexandria, Egypt. The seventh construction case related to a contract concluded for the construction and handing over of 18 Reefer Gantries Platforms and Foundation of substation of reefer located in Port Said East Port, Egypt. The eighth construction case related to the implementation of the electromechanical works for a building in Sixth of October City, Giza. The ninth construction case related to electrical and mechanical modifications for a corporation building in the Smart Village, Giza, Egypt. The tenth case related to a claim for outstanding amounts arising out of a contract for the performance of the core and shell works for a housing project located in Sixth of October City, Giza.

Two cases arising out of Sale and Purchase of Shares Agreements were filed during the second quarter of 2016. The first case related to 100% share purchase of a leading Egyptian manufacturing company, producing and distributing carbonated soft beverages using well – known trademarks. The second case related to a dispute arising out of a contract for the purchase of a State owned company (privatization) specializing in engineering and equipment.

Two other cases relating to lease agreements were also registered in the second quarter of 2016. The first case related to a hotel lease agreement located in Sharm El Sheikh, while the second case related to a piece of land in Abu Rawash, Giza.

A dispute arising out of the recognition of the validity and enforcement of the amendment of a partnership agreement providing for the dissociation/withdrawal of one partner and the joining of two new partners.

The second quarter of 2016 also witnessed the filing of a case relating to a hotel management agreement for a hotel located in Sharm El Sheikh. A real estate case was also filed in the second quarter of 2016 regarding the sale of a hotel located in Aswan, Egypt with usufruct rights to the land as well as a telecommunication contract concluded between two major telecommunication companies regarding the interconnection between their respective networks. A case arising out of a settlement agreement concluded between a company and one of its employees was filed. A case was also filed during the second quarter of 2016 relating to the furnishing and management of catering services for a touristic resort project located in Ain El Sokhna, Egypt. Another case related to a commercial agency agreement for the distribution of medical equipment concluded between an Egyptian company and the Middle Eastern subsidiary of an international company.

The following pie shows a breakdown of the types of disputed contracts during the second quarter of 2016:

crnl0001022016s

The rich variety of the types of disputed contracts referred to CRCICA in the second quarter of 2016 clearly illustrates the importance of arbitration as a means of dispute settlement and confirms the credibility of institutional arbitration under CRCICA’s auspices.

In the second quarter of 2016, arbitration proceedings involved parties from different countries including Egypt, Spain and the UAE. CRCICA is satisfied to see that its Arbitration Rules have recently been selected by parties from the Middle East and Europe.

The following pie shows a breakdown of the nationalities of non-Egyptian parties during the second quarter of 2016:

crnl0002022016s

The second quarter of 2016 witnessed the appointment of arbitrators coming from Egypt, Lebanon and France.

The following pie shows a breakdown of the nationalities of non-Egyptian arbitrators during the second quarter of 2016:

crnl0003022016s

 Posted in News
 Published on Jun 30 2016

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