Egypt’s Economic Court of Ismailia considers request for upholding decision of arresting MV EVER GIVEN

CAIRO - 20 June 2021: The Ismailia Economic Court of First Instance, presided by Judge Hani Allam considers Sunday a lawsuit filed by the Suez Canal Authority (SCA) to uphold a decision of seizing the stranded Panamanian container ship EVER GIVEN, which ran aground in the Suez Canal on March 23, 2021.

The Ismailia Economic Court of First Instance on May 29 adjourned a hearing for upholding the arrest of the ship to June 20, 2021, upon requests from the lawyers of the SCA and the shipowners, to allow further settlement discussions to take place.

Egypt has asked for $916 million in compensation for damages caused by the grounding of the ship, the salvage operation, and for loss of reputation. The situation complicated when an economic court in Ismailia governorate issued on April 13, 2021, a decision to officially arrest the ship until paying compensation.

SCA lawyer Nabil Zidan clarified in a press conference on May 330 that there are two legal cases regarding the decision of the arrest of the ship. "The first lawsuit filed by the Suez Canal Authority to judicially uphold the seizure decision," he said, noting that the Ismailia Economic Court recused itself from considering this case on May 23 and referred it to the Ismailia Court of the First Instance, which adjourned the case to June 20.

"Meanwhile, the second lawsuit filed by the shipowner Japanese company Shoei Kisen Kaisha was a grievance against the decision of putting the ship under arrest until paying the required compensation," he added. The court rejected the grievance.

Commenting on the adjournment of the first case, the Insurance club UKP&I said on May 29, 2021 that "the owners of the Ever Given and their insurers have been committed to an amicable and fair resolution of this matter and remain so. We look forward to further discussions and bringing this matter to a close as soon as is practicable."

In parallel, the SCA and the shipowners are resuming their negotiations about the required compensation. In the beginning, Egypt estimated the compensation value at $916 million, which has been reduced to $600 million. However, SCA Chairperson Admiral Osama Rabie stated previously in a phone-in that the Japanese Company wants to reduce the compensation sum from $600 million to $150 million.

In his meeting with Panamanian Ambassador to Egypt Alejandro Gante and Director General of the Panamanian Maritime Authority Rafael Cigarruista on May 25, Admiral Rabie said that the authority has provided facilities, revealing that “the value of the compensation requested by the authority is about $550 million, provided that $200 million shall be paid in advance, while the remaining $350 million are paid as letters of guarantee issued by an "A class" bank in Egypt.”

Additional reporting by Samar Samir

Egypt, MV EVER GIVEN, Suez Canal, Authority, Court

Egypt’s Economic Court of Ismailia considers upholding decision of arresting MV EVER GIVEN

CAIRO - 20 June 2021: The Ismailia Economic Court of First Instance, presided by Judge Hani Allam considers Sunday a lawsuit filed by the Suez Canal Authority (SCA) to uphold a decision of seizing the stranded Panamanian container ship EVER GIVEN, which ran aground in the Suez Canal on March 23, 2021.

The Ismailia Economic Court of First Instance on May 29 adjourned a hearing for upholding the arrest of the ship to June 20, 2021, upon requests from the lawyers of the SCA and the shipowners, to allow further settlement discussions to take place.

Egypt has asked for $916 million in compensation for damages caused by the grounding of the ship, the salvage operation, and for loss of reputation. The situation complicated when an economic court in Ismailia governorate issued on April 13, 2021, a decision to officially arrest the ship until paying compensation.

SCA lawyer Nabil Zidan clarified in a press conference on May 330 that there are two legal cases regarding the decision of the arrest of the ship. "The first lawsuit filed by the Suez Canal Authority to judicially uphold the seizure decision," he said, noting that the Ismailia Economic Court recused itself from considering this case on May 23 and referred it to the Ismailia Court of the First Instance, which adjourned the case to June 20.

"Meanwhile, the second lawsuit filed by the shipowner Japanese company Shoei Kisen Kaisha was a grievance against the decision of putting the ship under arrest until paying the required compensation," he added. The court rejected the grievance.

Commenting on the adjournment of the first case, the Insurance club UKP&I said on May 29, 2021 that "the owners of the Ever Given and their insurers have been committed to an amicable and fair resolution of this matter and remain so. We look forward to further discussions and bringing this matter to a close as soon as is practicable."

In parallel, the SCA and the shipowners are resuming their negotiations about the required compensation. In the beginning, Egypt estimated the compensation value at $916 million, which has been reduced to $600 million. However, SCA Chairperson Admiral Osama Rabie stated previously in a phone-in that the Japanese Company wants to reduce the compensation sum from $600 million to $150 million.

In his meeting with Panamanian Ambassador to Egypt Alejandro Gante and Director General of the Panamanian Maritime Authority Rafael Cigarruista on May 25, Admiral Rabie said that the authority has provided facilities, revealing that “the value of the compensation requested by the authority is about $550 million, provided that $200 million shall be paid in advance, while the remaining $350 million are paid as letters of guarantee issued by an "A class" bank in Egypt.”

Additional reporting by Samar Samir