Watson, Farley & Williams’ London Litigation Group has won one of the largest on-going Telecoms arbitrations in Europe. 

Watson, Farley & Williams, London acted for Vivendi Universal and its Polish telecom partner Elektrim SA in an enormous multi-million dollar shareholder dispute with Deutsche Telecom's T-Mobile for ownership of a 3% controlling block of shares in Poland’s PTC Era.  PTC Era is the largest mobile phone operator in Central Europe and is currently valued in excess of US$1 billion.  T-Mobile was seeking to exercise rights of first refusal over the 3% block, when the shares were transferred to Elektrim in August 1999.  T-Mobile’s request for a declaration that it owned the 3% controlling block was dismissed by the Tribunal with costs to be assessed at a later hearing.

The arbitration took place under Vienna Rules before a distinguished panel of leading European arbitrators chaired by Yves Derains.   The Claimant, T-Mobile, was represented by Gary Born of US firm Wilmer Cutler & Pickering, and earlier by Allen & Overy (Judith Gill) as arbitration counsel before the first hearing in November 2001.  Allen & Overy, Warsaw and Mayer Brown Rowe & Maw had advised T-Mobile on the original transaction in 1999.  The case also involved some of Poland’s leading experts on Communications law.

Watson, Farley & Williams, London acted as lead counsel for Elektrim at the request of Vivendi who were entitled to nominate lead counsel in the arbitration of its choice under its joint venture agreement with Elektrim.  The case commenced in December 1999 and the award was published in April 2003 after several lengthy hearings in Vienna and Warsaw.  Watson, Farley & Williams, London are also acting as lead counsel in a second related Vienna arbitration before the same tribunal involving the same parties which is on-going and due for a further hearing in late 2003.

The Respondents’ legal team was led by London litigation partners David Kavanagh and Andrew Hutcheon who instructed Toby Landau, Dominic O’Sullivan and Johnny Veeder QC of Essex Court Chambers.

London litigation partner David Kavanagh commented “This is a tremendous success for the clients in an immensely complex arbitration which has lasted over three years and involved many of Europe’s leading arbitration practitioners. The result confirms the great strides our arbitration practice has taken in recent years.

For further information please contact

Simon Bastin, tel: +44 (0)20 7814 8099 or via Email