News 26 Feb. 2020

Curtis Secures Victory for the Republic of Kazakhstan’s Committee of Roads

Curtis attorneys secured a complete victory with damages and costs awarded to the Committee of Roads, Ministry of Investments and Development of the Republic of Kazakhstan, in a FIDIC contract-based arbitration under the SIAC rules, against Turkish construction company, Taşyapi Inşaat Taahhüt San. Ve Tic. Aş (“Taşyapi”) (Case Nos. 415-417/17/PLN).

The claims arose from the Committee’s termination of Taşyapi for failure to mobilize for a road project in Western Kazakhstan. Taşyapi filed a request for arbitration at SIAC also seeking an emergency award in order to prevent the Committee from recovering its advance payments and calling on Tasyapi’s performance guarantees. Taşyapi obtained an ex parte order from the emergency arbitrator to that effect. In addition to defending the termination claims, the Curtis team highlighted the misrepresentations made in obtaining the emergency award, and counterclaimed on behalf of the Committee for the additional amounts incurred to contract with replacement contractors for the project. The tribunal agreed with the Committee’s defenses and dismissed Taşyapi’s termination claims in their entirety, and also awarded the Committee US$17.8 million in damages for the replacement contractors and approximately US$1.3 million in arbitration and legal costs.

Long-standing client Republic of Kazakhstan was represented by Curtis partner Hermann Ferré and associates Bibigul Nugumova, Alisa Shekhtman, Robert Groot and Matthew Morantz. Last year, Curtis defeated another US$20.3 million claim brought against the Committee over delays in the construction of a different road project.

Global Arbitration Review’s report on this award can be read here.