Legal developments in Egypt could be significant

Club Correspondents Eldib Advocates have notified Steamship Mutual Club of potentially important legal developments in Egypt.

The correspondents said that Egypt had lately seen a legislative development which would have an impact on Admiralty claims & claims related to Aviation civil law concerning the transport of goods and passengers filed before the Egyptian Courts. This involves the Economic Courts which will have jurisdiction over such commercial disputes.

The law came into force on October 1st 2019.

The aim of establishing the economic courts was to speed up the handling of lawsuits. These courts will apply a litigation process different from the ordinary litigation system, viz:

The first instance circuits of the Economic Courts will have jurisdiction over lawsuits not exceeding EGP10m ($614,000), the judgments of which are appealable before appeal circuits. However, the judgments delivered in cases not exceeding EGP500,000 are final.

The large sum judgments are subject to further appeals up to the Egyptian Supreme Court.

The economic courts have a preparation and mediation department , formed under the presidency of a judge amongst the appeal circuit judges.

The correspondents expected that all lawsuits concerning the above mentioned laws which are presently being prosecuted before commercial courts would henceforth be referred to the Economic Courts. Any new lawsuit in this respect should be filed before the Economic court.