Lawyers, other representatives, expert(s), tribunal’s secretary

Award

"The Facts"

[1].
On 09/14/2010, the representative of Mr. Abdulrahman Hassan Rahemaldin Hakeem appeared (referred to hereinafter as "Claimant"), with an Arbitration Request to the President of the International Arbitration Center, against Mr. Mohamad Osama Abdulkader Hussain Hashim (referred to hereinafter as "Respondent").
[2].
He concluded his request by obligating the Respondent of paying the sum of, S.R. 739,000.00 (Seven hundred Thirty Nine Thousand Saudi Riyals), which was borrowed from the Claimant, plus the legal interest of 5.5% per annum from due date, up to payment date.
[3].
On 20/03/2009 under the Contract of Warranty to pay debts executed between the Claimant and the Respondent stating that the Claimant lent the Respondent the sum of S.R. 739,000.00 (Seven Hundred Thirty Nine Thousand Saudi Riyals) to be invested by the Respondent, in Real Estate, in the United States of America, and he promised to re-pay the amount, on a five-year basis, with an interest of 5.5% per annum calculated upon the remained at the end of each year. But the Respondent did not pay as contracted and the Claimant, ran off all amicable ways to settle this issue so he resorted to Arbitration according to Article Seven of the Contract of Warranty to pay debts dated 20/03/2009 and hereinafter the context:

(The two Parties agreed that any discrepancy by any Party hereto is to be settled according to Arbitration as applicable in the U.S.A., or before the International Arbitration Center in Cairo.). (The International Arbitration Center referred to hereinafter as the "Center").

[4].
An Arbitration Agreement, is made by and between the (Claimant), and the (Respondent) on 13/09/2010 and both Parties hereby agree as follows:

1) Choosing the International Arbitration Center in Cairo and to apply its regulations and choosing the Egyptian Arbitration Law for the settlement of this dispute.

2) The award will be given within two months, from the date of this agreement.

3) The Arbitration Sessions will be held at the premises of the International Arbitration Center, in Cairo.

4) The Arbitral Tribunal consists of three Arbitrators:

The Claimant named his Arbitrator in his application to the International Arbitration Center. He is Mr. Mohammed Abdulhamid Ahmed Ibrahim, Arbitrator for the Claimant. The Respondent named Mr. Aymen Ghreeb Farag, and the two Arbitrators chose Mr. Hassan Ali Hassan Hamad as a Chief Arbitrator.

5) The Award is to be made according to the majority of opinions within the Tribunal, and they should do their best, to reach this award within a period of two months from the date of signing this Agreement.

6) The Award of the Tribunal is final and binding to the Parties of this Agreement.

- Claimant based his aforementioned Request upon what was provided in the final memorandum, that on 20/03/2009 the Contract of Warranty to pay debts was executed between Claimant and Respondent. According to such Contract, the Claimant lent the Respondent the sum of S.R. 739,000.00 (Seven Hundred Thirty Nine Thousand Saudi Riyals) to be invested by Respondent in Real Estate, in the U.S.A., and Respondent undertakes to re-pay this amount on a five-year basis plus an interest of 5.5% per annum calculated upon the remainder at the end of each year. But Respondent did not pay as agreed with Claimant breaching the conditions of this Contract.

Whereas the basic amount of the debt is S.R. 739,000.00, and Respondent agreed to pay the basic amount of the debt plus an interest of 5.5% per annum for five years;

Whereas the Respondent did not pay anything according to the conditions of the Contract;

[5].
Therefore, Respondent is obliged to pay the basic debt plus a 5.5% interest per annum up to the payment date:

- The amount due to the Claimant is as follows:

The basic debt = S.R. 739,000.00 + Annual interest of 5.5% = S.R. 40,645.00

- Daily interest on debt amount = S.R. 40645/ 365 days = S.R. 111.35

- Amount of interest due to Claimant for the period 20/3/2009 up to 20/3/2010 =S.R. 40,645.00

- For the period 20/3/2010 up to 30/9/2010 = 190 days x S.R.111.35 (the value of the due interest upon the basic debt daily) = S.R.21,156.5

The total amount up to 30/9/2010 =739,000.00 + 40645 + 21,156.5 = S.R. 800,801.5

[6].
2- Claimant enclosed with his Arbitration Request a docket containing the original of the warranty of Debt Payment dated 20/3/2009 executed between Claimant and Respondent, stating that Claimant lent the sum of S.R. 739,000.00 (Seven Hundred Thirty Nine Thousand Saudi Riyals) to Respondent.
[7].
Another docket contained the warranty of paying Dated 1/12/ 2008 between Claimant and Respondent upon which Claimant lent Respondent the sum of S.R. 40,000.00 (Forty Thousand Saudi Riyals).
[8].
3- On the 25th of September 2010, the Arbitral Tribunal held its first procedural session, the nominated representatives of both Claimant and Respondent presented the Powers of Attorney made by Claimant and Respondent to their Representatives filed in the case file after the Arbitral Tribunal had reviewed it. Then Claimant's Representative submitted his lawsuit, including the request for Arbitration sent to the Center, which stated that on 20/03/2009, a Contract of Warranty to pay debts was executed between Claimant and Respondent according to which Claimant lent Respondent S.R. 739,000.00 (Seven Hundred Thirty Nine Thousand Saudi Riyals) to be invested by Respondent in Real Estate in the U.S.A. and to re-pay such amount on a five-year basis, with an interest of 5.5% per annum accrued to the remaining balance of the said amount, at the end of each year, payable to Claimant. But Respondent breached the Contract and did not pay, accordingly, pursuant to Article seven of the contract referring to Arbitration:

(The two Parties agreed that any discrepancy by any Party to this Contract is to be settled according to Arbitration as applicable in the U.S.A., or before the International Arbitration Center in Cairo).

[9].
According to this stipulation, the dispute was brought to the International Arbitration Center binding Respondent to pay the amount of S.R. 739,000.00 in addition to the interest of 5.5% agreed upon, from the due date up to the payment date.
[10].
He presented a docket containing the original Payment with a warranty to repay the debts between Claimant and Respondent. He asked to keep the case for award, and submitting memoranda. The representative of Respondent submitted a notice nominating and choosing an Arbitrator and requested the session to be postponed for reviewing the documents and presenting memoranda and documents.
[11].
Representative of Claimant postponed the session to submit memoranda and documents. The Arbitral Tribunal decided to postpone the session to 5/10/2010 to present memoranda and documents.
[12].
4- During the session on 5/10/2010, Arbitral Tribunal was held in the presence of Representatives of Claimant and Respondent, Representative of Respondent presented a docket including a notice by Respondent to Claimant notifying Claimant of the payment of $10,938.00, equivalent to S.R. 40,000.00. The Arbitration Tribunal requested a formal translation from English to Arabic for the documents, and Representative of Respondent requested a postponement for translation, and the session was postponed to 12/10/2010 for preparing the translation.
[13].
5- At the last Hearing session, on Tuesday October 12, 2010 Attorneys of Claimant and Respondent were present.
[14].
The Representative of the Respondent presented a portfolio including the translation of the aforementioned Notice of Payment, from English into Arabic. It was reviewed by the Arbitral Tribunal, and Claimant's Representative requested a postponement to study it, and the Tribunal postponed the session for one hour, to give him a chance to study the documents presented by Respondent.
[15].
The session was continued on the same date and time, in the presence of the Tribunal and in the presence of Claimant and Respondent.
[16].
The representative of Claimant said that the documents, in the portfolio, which were written in English language, and translated into Arabic is about $10,839.00 which is equivalent to S.R. 40,000.00, and the Representative said that this amount was actually received by Claimant, and should be deducted from a Debt Payment Warranty dated 1/12/2008, which was presented in a docket during a previous session stating that Respondent was lent the sum of S.R. 40,000.00. Accordingly, this amount should be deducted from this Contract plus the accrued interest from due date to payment date.
[17].
We hereby request binding Respondent to make a warranty to pay the amount mentioned in the previous session with total S.R. 8008001.5 plus the remaining amount of S.R. 40000 plus the accrued interest mentioned in the Contract of 5.5% per annum calculated to the total of this amount after deducting the received amount of $10000 equivalent to S.R. 40000 to be deducted from the total amount, as per the Contract dated 1/12/2008 with the legal interest and he shall pay the remainder of the amount plus the aforementioned sum of S.R. 800801.50 plus the legal interest from due date up to payment date, and requested keeping the case for Award. Representative of Respondent asked for deducting the amount of the payment notice, from the basic debt amount due from Respondent without any interest because the project has not been implemented due to force majeure out of the hands of Respondent and the Respondent gained nothing to pay interest requested to postpone the lawsuit for Award.
[18].
WHEREAS both Parties requested postponing lawsuit for Award;

NOW THEREFORE, the session is postponed for consultation.

Decision

[19].
The Tribunal decided keeping the lawsuit for award on 26/10/2010 session.

Arbitral Tribunal

[20].
WHEREAS the representative of the Claimant presented his lawsuit including that according to a warranty to pay debts executed on 20/3/2009 upon Claimant lent the Respondent S.R. 739000 to be invested by him on his behalf in Real Estate in the U.S.A., and he warrant to repay this amount within five years with an interest of 5.5% per annum calculated on the remained amount of debt at the end of each year. But he failed to pay and according to a Debt Payment warranty dated 12/1/2008 the Claimant lent the Respondent S.R.40,000.00 to be repaid within eighteen months with an interest of 5.5% per annum, to be calculated on the total amount, to be paid with the basic amount to the total of S.R. 43360 at the end of eighteen months from the date of the contract. The representative of the Respondent presented a docket with a notice in English language translated into Arabic language, stating the Respondent sent to the Claimant according to this document $10839 the equivalent of S.R. 40,000.00. The representative of the Claimant agreed to the amount represented in the docket in an English language document, translated into Arabic is $10839 equivalent to S.R. 40000 and he agreed that the Claimant has already received the amount, and to be deducted from the basic amount submitted by him under a warranty to pay debts dated 1/12/2008 which was presented in a docket in a previous session and includes the Respondent’s approval of the Claimant's debt of S.R. 40,000.00. So this amount sent by the Respondent will be deducted from this contract plus the legal interest from due date up to payment date. We want the Respondent to be obliged to pay the amount mentioned on the previous session, to the total of S.R. 800,801.50 plus the balance of the said amount according to the contract of 12/01/2008, to the amount of S.R. 40,000.00 plus the legal interest according to the agreement in the contract, which is 5.5% per annum, accrued on the total of this amount after deducting the delivered amount of $10,839.00, equivalent of S.R. 40,000.00, This amount to be deducted from the total of amount due from him as per the contract dated 01/12/2008, with its legal interest, and obliging him to pay the remainder of the amount, plus the amount mentioned previously, of S.R. 800,801.50 plus legal interest, as agreed upon from due date up to payment date. And as the amount given from Claimant to the Respondent according to the contract dated 01/12/2008 is S.R. 40,000.00. And as the amount sent from the Respondent to the Claimant, according to the notice in English language, and translated into Arabic, dated 05/22/2010 with the amount of $10,839.00, equivalent to S.R. 40,000.00.
[21].
Whereas, the Respondent paid the second loan of S.R. 40,000.00, and there is no interest accrued to this amount.
[22].
Concerning the other part, the basic amount of debt, of the Debt Payment. Undertaking Contract dated 20/03/2009, and as the basic amount of debt is S.R. 739,000.00, and as the Respondent agreed to repay the basic amount of the debt, with an interest of 5.5% per annum. within five years. And as the Respondent, didn't pay anything, according to the contract conditions between them, the case in which the Respondent is obliged to pay the basic amount due from him, in addition to 5.5% agreed interest, until payment date.
[23].
The amounts due to the Claimant will be as follows:

The basic debt amount = S.R. 739,000.00

Annual interest @ 5.5% = S.R. 40,645.00

- Value of daily interest accrued on loan amount = S.R. 40,645/365 days = S.R. 111.35

- Amount due to Claimant for the period 03/20/2009 up to 03/20/2010 = S.R. 40,645.00

- For the period 03/20/2010 up to 09/30/2010 = 190 days x S.R. 111.35 (daily interest accrued to the balance amount) = S.R. 21,156.50.

- The total will be, up to 09/30/2010 = S.R. 739,000.00 + S.R. 40645.00 + S.R. 21,156.50 = S.R. 800,801.5.

Now Therefore

[24].
The Tribunal agreed Unanimously upon:

First: binding the Respondent to pay to the Claimant the sum of S.R. 800801.50 and half the expenses, Arbitrators expenses and half the attorney fees.

Second: rejecting All other requests of both parties..

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