Court of Cassation, No. 03-15.223

Court of Cassation, First Civil Chamber, 6 July 2005, No. 03-15.223

EL AMIOUNY INTERNATIONAL CONTRACTING AND TRADING (AIC)

Vs.

TRAFALGAR HOUSE CONSTRUCTION INTERNATIONAL LIMITED (THCIL) a.k.a. KVAERNER INTERNATIONAL CONSTRUCTION LIMITED (KCIL) now, SKANSA

THE COURT OF CASSATION, FIRST CIVIL CHAMBER, gives the following judgment:

According to the contract signed on 8 August 1994, the English company Trafalgar house construction international limited (THCIL), which then became Kvaerner international construction limited (KCIL) and then after that became Skanska, entrusted civil engineering, electrical, plumbing and mechanical works for the reconstruction of the sports city of Beirut. KCIL subcontracted almost all of the works to the Lebanese company El Amiouny International Contracting and Trading (AIC) through contracts dated 15 and 17 November 1994 which are subject to Lebanese law. The intended deadlines for the completion of the works was not respected, KCIL terminated the subcontracting contract. AIC implemented the arbitration proceedings provided for in the contract. The arbitral tribunal, through an award dated 11 October 2001, stated that AIC failed in its obligation of diligence and that the termination of the contract was justified and ordered AIC to pay various sums. AIC filed an action for annulment against this award.

On the first ground, taken in its five parts, as set out in the statement of claim and hereafter annexed:

First, the challenged judgment (Paris, 6 March 2003) holds, in view of the copies of the register, that several extensions of the deadline for arbitration were granted by the International Court of Arbitration and notified to the arbitral tribunal. Secondly, through a necessary interpretation of the provisions of the arbitration regulations of the International Chamber of Commerce, the extensions did not have to be notified to the parties themselves. Lastly, AIC, by its active behaviour, and in particular by paying costs during the deliberations, demonstrated its unequivocal willingness to participate in the arbitration until the award was rendered and to accept the extensions of deadlines, in such way that it renounced to take advantage of any irregularity in this regard.

On these grounds alone, and without committing the alleged grievances described in the pleadings, the Court of Appeal legally justified its decision in light of Articles 1502 and 1504 of the new Code of Civil Procedure.

On the second ground, taken in its two parts, as set out in the statement of claim and hereafter annexed:

Whereas this ground of cassation would not be of such nature as to allow the admission of the appeal;

FOR THESE REASONS:

Dismisses the appeal;

Orders the company AIC-EL Amiouny international contracting & trading to pay the costs;

Pursuant to Article 700 of the new Code of Civil Procedure, orders the company AIC to pay the company Skanskala the sum of 2,000 euros and rejects the request of the company AIC;

Thus done and judged by the Court of Cassation, First Civil Chamber, and pronounced by the President during his public hearing on six July two thousand and five.