Shearman & Sterling Wins Massive Arbitration Award for Dow

If there were any doubts about the potential for international arbitration, New York’s Shearman & Sterling LLP has now put those to rest.

Reuters is reporting that the firm has won a US$2.16-billion ruling — one of the largest arbitration awards ever — for its client, Dow Chemical Co., at the International Chamber of Commerce’s International Court.

The dispute centres around a stalled US$17.4-billion plastics joint venture between Dow Chemical and Kuwait’s state-run chemical company, Petrochemical Industries Co. of Kuwait.

In late 2008, as Western economies fell into recession and global markets crashed, Kuwait decided to pull out of the deal to create “K-Dow.” This violated Dow’s agreement and triggered break-up charges, which were subject to arbitration.

Dow’s shares are up 2.9% today (at 1pm).

Read the Reuters report here.

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