ICC International Court of Arbitration and Latvian courts rule in favour of shareholders of a food wholesaler
2023 - 05 - 31
The majority shareholders of a large food wholesaler have succeeded in ICC arbitration proceedings in Paris and subsequent enforcement proceedings in Latvian courts, ensuring that the ICC award on reimbursement of part of the arbitration costs is refused recognition and enforcement in Latvia.
The ICC arbitration was initiated by a minority shareholder of a large food wholesaler, alleging that the majority shareholders had acted contrary to the concluded shareholders’ agreement.
The minority shareholder’s claim for more than EUR 3 million was entirely dismissed, however, at the same time the tribunal ruled that the majority shareholders shall reimburse part of the minority shareholder’s arbitration costs.
The minority shareholder applied to the Latvian courts for the recognition and enforcement of the award; however, the application to recognize and enforce the award in Latvia was refused.
Although the decision of the first instance court was appealed by the minority shareholder, before the appellate decision was rendered, the parties agreed on a settlement favourable to COBALT’s clients.