Engaging in international arbitration presents challenges that no conventional legal education can fully prepare one for. This was evident in Lexster Law’s recent involvement in an arbitration case seated in Kigali, Rwanda, under the Kigali International Arbitration Centre (KIAC) rules and governed by Rwandan law. Our client, a supplier of educational technology to a governmental agency, faced a complex dispute initially centered on payment issues, which evolved into a multifaceted legal battle involving a performance guarantee, interim relief skirmishes, and a challenge against one of the arbitrators, alongside parallel litigation in local courts.
A Global Tribunal
A distinctive aspect of this arbitration was the composition of the tribunal: a president based in Singapore, alongside arbitrators from Malaysia and Nigeria. Representing a client before a panel with diverse European, Southeast Asian, and African legal perspectives required not only legal acumen but also cultural sensitivity. With the tribunal exercising procedural discretion, our submissions anticipated the need for adaptability rather than relying on a static approach.
Operating Within a Foreign Legal Framework
The contract was subject to Rwandan law, a civil-law system with French influences, distinct from the common-law tradition familiar to Indian legal practitioners. Engaging genuinely with this legal system was essential for determining liability, damages, and obligations. This required collaboration with Kigali-based co-counsel for procedural and institutional guidance while Lexster Law led the strategic direction and case management. The integration of local expertise with overarching strategy was crucial to our approach.
The Battle for Interim Relief
One of the most intense phases involved securing interim measures. The opposing party sought to call on our client’s performance guarantee and facilitated the auction of disputed equipment. We responded with urgent applications under the KIAC rules and Rwandan law, obtaining procedural orders to restrain these actions. When the equipment was auctioned in violation of tribunal orders, we recalibrated our strategy by quantifying the loss and incorporating it into the main claim. The tribunal held the opposing party accountable for breaching procedural orders and awarded compensation to our client.
Challenges Amidst a Pandemic and Parallel Litigation
The arbitration unfolded during the COVID-19 pandemic, which necessitated transitioning from in-person hearings in Kigali to virtual proceedings across multiple time zones. Concurrently, the opposing party initiated litigation in the local commercial court to contest the tribunal’s interim orders and filed a challenge against the tribunal president, alleging bias. We navigated the intersection of arbitral and judicial processes to uphold the tribunal’s integrity, and the challenge was ultimately dismissed.
The Outcome and Implications for Indian Firms
The tribunal’s final award was decisively in favor of our client, resulting in a multi-million-dollar recovery including compensation for auctioned equipment and a full award of costs. This case challenges the assumption that international arbitration, particularly in emerging regions like Africa, is dominated by large Western firms. Indian firms, with their robust advocacy and strategic acumen, are equally equipped to handle such complex, cross-continental disputes.
Looking Forward
This arbitration experience underscores the fading geographical barriers in international dispute resolution. The skills honed in Kigali have been instrumental in our subsequent cross-border work across regions such as Maputo, Laos, and Nairobi. As arbitration centers in Africa and other emerging markets grow, we anticipate a surge in cross-border legal work and are prepared to be at the forefront of this evolution.
About the author: Shantanu Agarwal is the Managing Partner of Lexster Law.
Disclaimer: The opinions expressed are those of the author and do not necessarily reflect the views of Bar & Bench. For publication inquiries, please fill out the form available on Bar & Bench.
