Pakistan Infrastructure Company Wins International Arbitration Case
A Pakistani infrastructure company and a Chinese state-owned enterprise accrued a dispute over the performance of a settlement agreement for a Pakistani highway project, with the other party defaulting on over US$20 million in settlement funds. Caichen Fuwo, in collaboration with a London-based law firm, formed a cross-border team to initiate arbitration proceedings before the International Chamber of Commerce (ICC). They addressed the other party's defense of "lack of regulatory approval" as a reason for refusing payment by presenting evidence of significant flaws in its application materials. They also refuted its claim of "contractual modification" and clarified the elements of "implied modification" under English law. During the trial, they coordinated remote testimony by three witnesses from China, overcoming challenges of time differences and procedural differences. Ultimately, the tribunal fully upheld the client's claims, ordering the Chinese company to pay the full amount owed and cover 90% of the arbitration and attorney fees, successfully recovering substantial financial losses for the client.