Originally from International Arbitration Court Decisions - 3rd Edition

JUDGMENT BY EGYPT’S COURT OF CASSATION IN THE CASE NO. 4729 OF JUDICIAL YEAR 72 RENDERED IN JUNE 2004

(“The Group of companies doctrine in Egyptian law”)

Subject Matters:
Extension of the arbitration agreement to a non-signatory parent company, in domestic proceedings, based on criteria of economic unity and identity of economic management; the extent to which theories of extension in the context of groups of companies are in conformity with Egyptian Law.

Findings:
The mere fact that one of the parties to the arbitration proceedings is a company member of a corporate group is not by itself sufficient basis to hold the parent company bound by the contracts concluded by other companies of the group. Evidence of implicit consent or involvement in performance of a contract containing an arbitral clause is necessary for extension.

Parties:
Claimant: Khatib Petroleum Services International Co.
Respondent: Care Construction Co. (“CC”); and Care Service Co. (“CS”)

Applicable Law:
Egyptian Law

Type of Proceedings:
Ad hoc arbitration administered by the Cairo Regional Centre for International
Commercial Arbitration (CRCICA)
Place of Court Proceedings:
Cairo, Egypt

Seat of Arbitration:
Cairo, Egypt
Appellant
El-Khatib Petroleum Services International Co.
Opposite Party
Care Service Ltd.