EGYPT Law and Practice Contributed by: Muhammad Ussama and Adam El Shalakany, Shalakany Law Office
tration agreement and, thereby, render an otherwise inadmissible litigation claim admissible. Recently, confidentiality of arbitration proceedings is not being treated as seriously as before. This is especially so in complex disputes with a network of contracts and agreements where not all relevant par- ties are contracting parties to all such contracts and agreements. In short, whenever the stakes are high, parties purse the same claims simultaneously in dif- ferent fora and against different parties; all done with the goal of maximising the chances of recovery. This phenomenon requires specialised dispute resolution practitioners who are able to handle arbitration and litigation work with the same level of quality and skill. In Egypt, there are various limitation periods that fre- quently pop up and, therefore, must be kept in mind. For commercial debts, the statutory period is seven years from the date on which the debt crystalises. For administrative disputes, a distinction must be made between cases seeking the cancellation of an admin- istrative decree and cases seeking to bring a contrac- tual claim pursuant to an administrative contract. With respect to the former, the general rule provides for a 60-day limitation period. However, certain nuances apply and must, therefore, be considered when exam- ining any given cancellation claim. With respect to the latter, the general rule provides for a 15-year limitation period. As for civil claims, a distinction must be made between claims based in tort and contractual claims. For claims based in tort, the general rule provides for a limitation period of three years. Concerning contractual claims, the general rule provides for 15 years. 2.2 Court Structure In Egypt, there are different judicial bodies with differ- ent scopes of jurisdiction. These are ordinary courts, administrative courts, and the Supreme Constitutional Court. 2. Litigation 2.1 Limitation Periods
Ordinary courts have wide jurisdiction to hear and decide a wide array of cases, including criminal, civil, commercial, employment and personal status-related cases. Within ordinary courts, there exist specialised courts, such as the economic courts, which were introduced in Egypt in 2008 and have gained traction as specialised, fast-paced courts that deal with cer- tain types of commercial disputes that stem from the application of exhaustively listed laws. Labour courts are another example of specialised courts within the realm of ordinary courts that have gained a reputation for being employee-friendly. Administrative courts are, on the other hand, courts within the Egyptian State Council, which have jurisdic- tion to hear and decide on administrative disputes of all types, including disputes concerning the validity of administrative decrees and disputes concerning the validity, interpretation, implementation, termination and/or rescission of administrative contracts. These courts have, throughout the last decades, gained a reputation of being state-friendly, and investors deal- ing with the Egyptian government have been known to be in favour of arbitration as their dispute-resolution mechanism of choice. The Egyptian state’s response has been to issue decrees aiming to encourage the use of courts by placing procedural obstacles in the face of the conclusion of arbitration agreements in the context of contracts concluded with the Egyptian state and/or state-owned or -controlled entities. The legitimacy of such decrees have been questioned but there have not been any court rulings that confirm the stance of Egyptian courts in relation to such decrees. Finally, the Supreme Constitutional Court sits at the top of the judicial structure in Egypt. Its role includes to decide on challenges directed against the consti- tutionality of laws and regulations. 2.3 Pre-Action Conduct There are scattered statutory provisions in vari- ous Egyptian laws that impose pre-action conduct requirements on the party seeking to bring forth a claim. As such, it is of paramount importance that cli- ents engage experienced practitioners with in-depth knowledge of the laws of Egypt when contemplating to pursue a claim before Egyptian courts.
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