Saudi subsidiary of a world leading food and liquid packaging company obtains awards in two ad hoc arbitrations
Clients Saudi subsidiary of a world leading food and liquid packaging company
Jones Day successfully represented the Saudi subsidiary of a world leading food and liquid packaging company in two separate ad hoc arbitrations seated in Jeddah (Saudi Arabia) against two Saudi shareholders. The disputes arose out of two separate agreements (governed by Saudi law) for the payment of an additional contribution to be paid by the Saudi shareholders to the company. The local shareholders challenged the validity of the agreement based on Sharia principles and Saudi law. The two awards rejected the respondents' allegations and ordered each of the respondents to pay the additional contributions due to our client. The awards further recognized our client's right to set-off payment of dividends against the payment of the additional contribution due by the respondents. Respondents were also ordered to pay claimant's legal costs as well as the arbitration costs.