Commercial Litigation
In Egypt, a commercial dispute arises between business entities (such as partnerships and corporations of different types) and/or merchants as defined generally under the Egyptian Commercial Law. Commercial litigation in Egypt is similar to commercial litigation in other civil law jurisdictions such as France and the rest of the MENA region in regards to both form and function. Any litigant that has previously litigated in a civil law jurisdiction will not find any real surprises in commercial litigation in Egypt.
Commercial litigation typically proceeds in the same way as general civil litigation. If a debtor abstains from paying their dues or fulfilling their duties in general, the creditor to such obligation may resort to a commercial lawyer specialised in commercial disputes. A plaintiff’s lawyer will typically attempt to seek amicable settlement with the debtor first although this is generally not a pre-litigation requirement in Egypt. This is normally done through serving a formal court notice to the debtor identifying the debt or the breach and demanding performance within a specific duration. If such an attempt at amicable settlement fails, the plaintiff’s counsel may, depending on the particulars of the relevant dispute, be able to proceed immediately with launching a commercial court case before the competent court. Potential litigants should be aware that notice requirements in Egypt are quite stringent and litigants should expend their best efforts to conform to the notice requirements to avoid wasted costs in time and money in litigation. Oftentimes, notices must, in order to produce the intended legal effect, be sent via court bailiffs. If the debtor fails to comply with the obligations laid out in the official notice, the plaintiff’s lawyer files the lawsuit. A court hearing will be scheduled before the relevant commercial court. Both parties will attend before the judge and would normally be allowed a chance to present their oral pleadings as well as their written submissions (including prayers for relief) to court. There is no jury system in Egypt and, therefore, commercial cases will always be reviewed and decided by a panel of judges. Depending on the complexity of the case and whether or not technical issues are involved, the court will likely refer the case to an expert assigned by the Ministry of the Justice, to examine the technical aspects of the case and to report its findings to court in a written format. After various written submissions, short oral hearings and the production of the expert report, the court will normally proceed with issuing its judgment.
