Oracle

We represented Oracle Corporation in an arbitration in which Saudi System sought damages in excess of $30 million arising out of a joint venture in Saudi Arabia.  Alleging that Oracle overcharged the joint venture for software licenses, the minority shareholder accused Oracle of breach of contract, tortious interference, breach of fiduciary duty, and unjust enrichment in an international arbitration conducted under Saudi law.  Although the shareholder was based in Saudi Arabia and was presumably well-versed in Saudi law, we were able to demonstrate that its claims were not cognizable under Saudi law.  At the eleventh hour, the shareholder therefore asserted a new theory.  It accused Oracle of ghasb, a form of oppression and usurpation denounced in the Qu’ran.  Although our team was unfamiliar with the legal precepts in the Qu’ran and had no published decisions from Saudi courts upon which to rely, they nonetheless prepared expert testimony for the arbitration hearing showing that the shareholder had misunderstood the concept of ghasb.  Persuaded, the panel issued a unanimous 40-page opinion finding ghasb inapplicable and holding that Oracle did not act unfairly towards or usurp any of the shareholder’s rights.

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