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Schoenherr Leads Z-Mobile to Victory in Kosovo's Largest Commercial Arbitration to Date

Schoenherr Leads Z-Mobile to Victory in Kosovo's Largest Commercial Arbitration to Date

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Schoenherr has led Kosovar mobile operator Dardafon.net LLC ("Z-Mobile") to victory in its dispute against state-owned Telecom Kosovo ("PTK") in Kosovo's largest commercial arbitration to date.

An ICC Tribunal composed of Georg von Segesser (President), Franz Schwarz (Z-Mobile's appointee), and Jernej Sekolec (PTK's appointee), awarded Z-Mobile damages, lost profits, contractual penalties, arbitration costs, and interest in the amount of EUR 31.1 million for PTK's breaches of a 2009 MVNO Support Agreement. Z-Mobile was further awarded specific performance under the Agreement, gaining full access to PTK's infrastructural resources and up-to-date technologies such as 3G and 4G.

The dispute arose under terms of the Agreement which were ambiguous on Z-Mobile's access to new technologies and sharing of infrastructural resources. PTK had interpreted the terms to the effect that there was no obligation to provide to Z-Mobile any new technologies including 3G and 4G. The Tribunal examined the parties' joint intent and their subsequent conduct, and concluded that PTK was and is, in fact, under the obligation to provide all new technologies and services to Z-Mobile.

The team advising Z-Mobile consisted of Partner Christoph Lindinger, Counsel Leon Kopecky, and Associate Victoria Pernt.

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