August 24, 2012 - Assignment

Tele2 Sverige arbitration win against Digitelecom confirmed and costs imposed on opposing counsel

In a decision on 25 July 2012, the US District Court for the Southern District of New York denied a motion filed on behalf of Digitelecom to vacate an award issued in September 2011 in favour of Tele2 Sverige AB. Instead, the court granted Tele2’s cross-motion to confirm the award and, importantly, imposed costs on opposing counsel.

In the 2011 arbitral award, the tribunal denied all claims that Digitelecom had brought against Tele2, and ordered Digitelecom to pay Tele2’s costs of arbitration including legal fees. Digitelecom applied to vacate the award in December 2011, arguing among other things that the arbitral tribunal “had rendered a decision that was so inconsistent with the undisputed facts as to be irrational and which creates the strong inference of partiality or bias.” However, the court rejected these arguments, instead granting Tele2’s cross-motion to confirm the award and impose costs on opposing counsel.

Tele2 Sverige was represented by Mannheimer Swartling in the arbitration, which took place in New York under the rules of the International Centre for Dispute Resolution (ICDR). The agreements in dispute were governed by New York law. The firm’s team included partners Kaj Hobér and Kristoffer Löf in Stockholm, assisted by associates from the Stockholm, Moscow and New York offices. In the subsequent New York court proceedings, Mannheimer Swartling supported Hughes Hubbard & Reed’s team composed of partner John Fellas and associate Jennifer Alpern Hecht.

For more information about the matter, please see the briefing provided in the 27 July 2012 issue of Global Arbitration Review (pdf).