Lenz & Staehelin secures major win for thyssenkrupp in multi-billion submarine arbitration brought by the Greek state

Lenz & Staehelin (alongside Italian dispute resolution firm ArbLit and KLC Law Firm from Greece) has been defending thyssenkrupp in a complex multi-billion, multi-party arbitration arising out of contracts for the construction and modernization of several submarines for the Greek Navy. The dispute is governed by Greek law. Apart from thyssenkrupp, the sub-contractor responsible for design and material supply, the arbitration has been brought against Hellenic Shipyards (HSY), the main contractor in charge of construction works, as well as Lebanese shipbuilding group Privinvest as HSY's majority owner. As has now become public, in a partial award issued in September 2023, the arbitral tribunal bindingly rejected all claims asserted against thyssenkrupp, while upholding some residual claims concerning the other respondents in principle (for which the arbitration proceeds to the quantum phase). The matter has involved the review of industrial developments and corporate transactions dating back decades, as well as political and geopolitical developments in Greece and the EU in the same time frame.