Hogan Lovells Successfully Defends PKN ORLEN in CZK 19 Billion Arbitration
03 November 2010
PRAGUE, Hogan Lovells has successfully represented PKN ORLEN, one of Europe’s largest energy companies, in an international arbitration before the Prague Arbitration Court . The claim was brought by Agrofert Holding for alleged damages exceeding CZK 19 billion (approximately EUR 800 million) and is the fourth and largest of a series of cases relating to a similar subject matter.
This success for PKN ORLEN follows the 30 June 2009 decisions, in which the Prague Arbitration Court fully dismissed claims in two other arbitration cases brought by Agrofert Holding. All of the cases related to the proposed disposals of certain assets after PKN Orlen won the privatisation of Czech petrochemical concern, Unipetrol, a.s. in 2005. In the recent fourth claim, Agrofert Holding claimed damages of over CZK 19 billion (approximately EUR 800 million) for alleged fraud, unfair competition and damage to reputation. All such allegations were rejected as completely unfounded. Further, the Prague Arbitration Court also ruled that Agrofert Holding should compensate all legal costs incurred by PKN Orlen in defending the action.
Hogan Lovells Prague partner Miroslav Dubovský commented:
"We are very pleased to have helped to protect the legitimate and lawful rights of our longstanding client, PKN Orlen. The arbitration court has issued a very clear judgment, which recognises that the damages claimed by Agrofert Holding have been without merit in every respect. Overall, PKN ORLEN has now successfully fought off three of the four arbitration claims and resisted in total well over 90% of amounts Agrofert Holding claimed, exceeding EUR 1 billion."
In all four of the high-profile international arbitrations against Agrofert Holding, PKN ORLEN has been represented by Hogan Lovells. The legal team was led by Miroslav Dubovský, managing partner at Hogan Lovells Prague, and also included the Prague office Counsel, Howard Chapman, and members of the Prague and Warsaw Hogan Lovells team.