Issue #42: Never Say Never
Welcome to the 42nd edition of OIA!
Here are the latest 🌶 headlines in APAC:
Singapore: Gambling site operators are convicted in Singapore's largest money laundering case
South Korea: NewJeans asks US Court to unmask YouTuber who has been posting defamatory videos against them
Ling Yah
P/S: Know of any interesting seminars happening? Drop us a note at editor@overheard.asia!
The $32.3 million Price For Interference!
The South Korean government is still facing financial implications thanks to the 2015 Samsung merger!
🍿 What Happened?
In July 2015, Samsung C&T and Cheil Industries merged (“Merger”).
US-based hedge fund Mason Capital Management (“Mason Capital”), which held a 2.18% stake in Samsung C&T then, opposed the Merger and claimed that the proposed exchange ratio of 0.35 shares of Cheil Industries for each share of Samsung C&T was unfair to its shareholders.
The South Korean government denied any involvement in directing the state-run National Pension Service (NPS) - a significant shareholder in Samsung C&T - to vote in favour of the Merger.
In September 2018, Mason Capital filed for arbitration against South Korea, alleging that it it suffered a loss of approximately $192.5 million.
In June 2023, the international tribunal ruled that the South Korean government should compensate another US hedge fund, Elliott Investment Management, up to $94.99 million.
👀 What Now?
The Netherlands Permanent Court of Arbitration (PCA) has now ordered the South Korean government to pay $32.3 million plus interest on delayed payments at 5% per annum, legal fees ($10.31 million), and arbitration costs ($630,000) to Mason Capital.
Yikes. 😅
Never Give Up
Here’s a lesson on never giving up:
🍿 What Happened?
In 2008, Delhi Airport Metro Express (“DAMEPL”) and Delhi Metro Rail Corporation (“DMRC”) entered into an agreement for the design, installation, commissioning, operation, and maintenance of the Airport Metro Express Line for a 30-year term (“Agreement”).
DMRC would handle the construction of all civil structures, whereas DAMEPL would handle the system works. However, DAMEPL suspended operations due to defects found in the viaduct.
In October 2012, DAEMPL issued a notice to terminate the Agreement.
In 2017, an arbitral tribunal ruled in favour of DAMEPL, with DMRC having to pay Rs 2,782.33 crore (“2017 Arbitration Award”).
In September 2021, the Supreme Court upheld the 2017 Arbitration Award and later dismissed a review petition filed by DMRC, stating that no case for review had been made out.
👀 But the story continues!
As a last ditch attempt, DMRC filed a curative plea against the dismissal of the review petition and won!
With the Supreme Court agreeing to set aside its own 3-year-old judgment on the basis that its earlier interference had resulted in a ‘miscarriage of justice’ to a public utility burdened with an hefty liability.
What a rollercoaster, eh?
Never Trust Your Bankers
Never trust your bankers?!
🍿 What Happened?
Bidzina Ivanishvili, the former Prime Minister of Georgia, fell victim to the fraudulent schemes of Credit Suisse’s former banker, Patrice Lescaudron, who dipped into Ivanishvili’s accounts to mask growing losses in portfolios belonging to other Russian clients.
Ivanishvili was understandably furious and argued that the banker’s supervisors were aware or should have known of the fraudulent activities. Meanwhile, Credit Suisse maintained that the banker was a ‘lone wolf’ who had hid his actions from his colleagues and bosses.
In 2022, a Bermuda judge ruled against Credit Suisse and held that the bank’s mishandling of the case contributed to the plunge in shareholder confidence.
Ivanishvili won $600 million in the Bermuda ruling and late last year, Credit Suisse was ordered by a Singapore court to pay Ivanishvili $742.7 million.
👀 What Now?
Credit Suisse now wants to overturn the $742.7 million order at Singapore’s top court.
Who will prevail - a billionaire or now-defunct bank?!
Only time will tell.
Spotlight: Lukas Lim
What is your current role?
I’m an international disputes lawyer with Norton Rose Fulbright specialising in international arbitration. I would like to say that my time is divided between conducting devastating cross-examinations and delivering game-changing closing submissions, but my life involves a lot of drafting, re-drafting, reading my drafts, and re-drafting again.
Case in point – I’m currently preparing a second draft of a request for arbitration on a contractual dispute, drafting a first cut of a legal memo, and writing material to teach a class at NUS on document production.
What is your proudest achievement?
Planning a third date with my wife while we were still dating in KL, who told me some time later it was the key event that made her decide to marry me.
It started off with a morning learning to bake croissants (and watching in horror at the amount of butter involved), eating chill pan mee for lunch, spending the afternoon at the Dialogue in the Dark exhibition led by blind guides in total darkness (which allowed me to hold her hand to avoid bumping into things), followed by a walk in the park, and having mamak food for dinner.
If you had 25 hours in a day, what would you do with the extra hour?
Probably sleeping in, but ideally writing a science fiction novel on interplanetary arbitration where opposing counsel from different galaxies overcome jurisdictional challenges to find true love.
If you weren't a lawyer, what would you be?
I always wanted to be a palaeontologist as I loved dinosaurs as a child, but now the only bone I pick is with my opponent’s arguments.
Your favourite food haunt is...?
I enjoy going to Micasa Kitchen & Bar, a no-frills family-run restaurant along Jalan Jurong Kechil (nearish Beauty World MRT), with generous portions of paella and sangria.
Food Feature
Looking for a nice place to cool off while in Gangnam, Seoul?
Try this quaint little cafe called Bingbingbing. It's milk bingsu (shaved ice) is soft and delicious and pairs well with its lemon flavoured bingsu.
Spaces are limited so try to come during an off-peak time. That said, it's close to local transportation so it's definitely a good afternoon dessert spot to chill at!
Address: 5-29 Cheongdam-dong, Gangnam-gu, Seoul, South Korea (Google Maps link)
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