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DWF has won €30 million in ICC arbitration

09 February 2022

DWF team in Poland successfully represented the owners of shopping centres in the ICC arbitration, winning it all: a contractual penalty of €30 million as well as the interest and costs of the arbitration.

The arbitration was commenced as the aftermath of failed sale transaction of two shopping centres in Kraków, Poland. Following three-year proceedings with eight legal experts, including six law professors from Polish top universities, technical experts and experts on valuation on damages, the ICC tribunal ordered companies from the Johannesburg-listed NEPI Rockcastle group to pay DWF's clients, the owners of the properties (i.e. Centrum Krokus Sp. z o.o. and Centrum Serenada Sp. z o.o., entities ultimately controlled by Foncière Euris, a majority shareholder of French conglomerate Rallye SA controlling Casino Group), €30 million as contractual penalty along with the interest and arbitration costs. 

The tribunal accepted the arguments of the DWF counsel that the transaction failed since the purchaser's intentional actions prevented the fulfilment of certain agreed conditions precedent to closing. These conditions included among other things a receipt of a regulatory approval to pursue the acquisition before the long stop date. The transaction documents contained a reservation of a €30 million contractual penalty – the goal of which was to protect the owners and sellers of the shopping centres against any intentional action of the purchaser aimed at sabotaging the transaction – and which ultimately was awarded by the ICC tribunal.

DWF's team representing the shopping centres owners consisted of: Maciej Jamka (Senior Partner), Ewelina Wętrys (Counsel), Patrycja Treder (Senior Associate), professor Bogudar Kordasiewicz 
(Of Counsel), and Dominika Sarek (Associate).

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