Interim Award in ICC Case No. 5029

XII Y.B. Comm. Arb. 113 (1987)

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Interim Award in ICC Case No. 5029

Panel of Arbitrators
XII Y.B. Comm. Arb. 113 (1987)

Facts

Two French companies (plaintiffs) entered into a joint venture with two Egyptian companies (defendants) to construct civil works in Egypt. The contract included a choice-of-law clause providing that the laws in force in Egypt governed the contract. The contract also contained an arbitration agreement providing for arbitration under International Chamber of Commerce (ICC) Rules without specifying a seat for the arbitral tribunal. A dispute arose between the parties, and the French companies filed a request for arbitration under the ICC Rules. The ICC selected the Netherlands as the arbitral seat pursuant to Article 12 of the ICC Rules; the Egyptian companies also proposed the Hague as a place for the arbitral tribunal in its responses to the tribunal. The Egyptian companies argued Egyptian law of civil procedure controlled because the choice-of-law clause governed substantive and procedural issues, including issues relating to the arbitration. The Egyptian companies argued that the choice-of-law clause and arbitration clause clearly expressed the intention of the parties that the arbitration is a local arbitration. Although agreeing that Egyptian law controlled the substantive issues arising from the contract, the French companies argued Dutch law governed any procedural issues because the arbitration was seated in the Netherlands.

Rule of Law

Issue

Holding and Reasoning ()

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