Steinmetz seeks to overturn NIS 50m arbitration ruling

Beny Steimetz does not accept the ruling by arbitrator Judge Emeritus Boaz Okun to pay geologist Dr. Joseph Langotsky compensation for damages.

Beny Steimetz does not accept the ruling by arbitrator Judge Emeritus Boaz Okun to pay geologist Dr. Joseph (Yossi) Langotsky NIS 50 million in compensation for damages caused by the withdrawal of Steinmetz's company, Scorpio Real Estate Ltd. (TASE: SCRP.B1) from their Tamar partnership in 2008, shortly before the multibillion dollar natural gas discovery at the exploration license.

A day before the deadline to pay Langotsky, Scorpio has filed with the Tel Aviv District Court a motion to void the arbitrator's ruling. The company promised to deposit with the court a bank guarantee in the amount of the award, until the motion is heard.

After Scorpio quit the Tamar partnership, and after Langotsky failed to find a buyer for Scorpio's rights to the license, he lost his rights to Tamar, which was named for his granddaughter.

Scorpio's main contention in the motion to void the arbitration is that Judge Okun ignored Scorpio's central claim that when the partnership agreement was signed with Langotsky, the parties agreed that compensation for loss of profits would only be paid in the event that Scorpio ceased investing in the venture. Scorpio claims that was no agreement to pay Langotsky if it quit the venture without giving him sufficient opportunity to find an alternative investors, which was the case.

Langotsky's attorney, Adv. Yossi Segev, said in response that he was studying the material and could not respond at this time.

Published by Globes [online], Israel business news - www.globes-online.com - on October 24, 2013

© Copyright of Globes Publisher Itonut (1983) Ltd. 2013

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