King & Spalding recently announced that a transatlantic team of lawyers from its international arbitration practice secured a $133 million award against the Egyptian government in a high-profile, long-running dispute involving the expropriation of a 161-acre resort property on the Red Sea. The award is the largest ever granted to individual claimants by the International Centre for Settlement of Investment Disputes (ICSID), it is also the seventh-largest ICSID award ever rendered.
King & Spalding's clients, Italian citizens Waguih Siag and Clorinda Vecchi, were the owners and principal investors in a project to develop a resort on the Egyptian side of the Egypt-Israel border on the Gulf of Aqaba.An ICSID tribunal determined that Egypt had violated an investment treaty between Italy and Egypt that protected investments by Italians in Egypt. The tribunal held that Egypt had illegally seized the property from Siag and Vecchi, repeatedly failed to respect the rulings of its own judiciary and failed to offer the pair any measure of protection or security in relation to their investments. The tribunal awarded Siag and Vecchi approximately $127 million in damages and interest and an additional $6 million in legal expenses.
The King & Spalding legal team representing the clients in the matter was led by partners Reginald R. Smith (Houston), Craig S. Miles (Houston) and Kenneth R. Fleuriet (London) and assisted by associates Heloise Herve (London), Sarah Zagata Vasani (Washington) and Amin M. Husain (New York).