Clarion Wins Case against Sri Lankan Government

26 Jan, 2011

Clarion in Leeds has successfully concluded a long-running claim against the Government of the Socialist Democratic Republic of Sri Lanka on behalf of its client, the Original Eickhorn Solingen Company Limited (OESC), recovering a substantial sum.  The Sri Lankan Attorney General led the settlement discussions for the Sri Lankan Government.

The claim arose from an international arbitration started in Sri Lanka in 1999 concerning the quality and fitness for purpose of military body armour supplied to the Sri Lankan Army.  The arbitration was initially won by OESC (previously known as Lightweight Body Armour Limited) before an appeal by the Sri Lankan Army and a further successful appeal by OESC to the Supreme Court in Sri Lanka.  The arbitration award was then registered as a Judgment of the High Court of England & Wales and enforcement proceedings commenced in the Commercial Court in London. 

Clarion was instructed in February 2010 and the Clarion dispute resolution team moved swiftly to identify Government assets against which enforcement action could be taken.   

“The claim brings to an end a 12 year dispute.  The enforcement proceedings were lengthy, technically complex and politically sensitive as the Government claimed that certain of its assets were subject to diplomatic privilege and immune from enforcement action.  We were able to successfully challenge those arguments and recover the Judgment sum together with interest and costs,” explained Stephen Inglis, partner in Clarion’s dispute resolution team.  “I have acted for OESC in the past and we were instructed in this instance because the client wanted a fresher, more dynamic service from its solicitors.  I am delighted that we have helped to bring to a successful end a lengthy and complex commercial dispute.”

Clarion’s dispute resolution team was once again recognised in Chambers UK 2011 for its outstanding client service.

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