Representing the Indonesian Branch of a Multinational Securities Company in an Unprecedented “Mass Arbitration” at the Financial Services Sector Alternative Dispute Resolution Institution (LAPS SJK)
It is a pleasure to announce another recent success of our Litigation & Alternative Dispute Resolution team in representing the Indonesian branch of a multinational securities company in an unprecedented “mass arbitration” at the Financial Services Sector Alternative Dispute Resolution Institution (Lembaga Alternatif Penyelesaian Sengketa Sektor Jasa Keuangan) (LAPS SJK).
It was one of the first and biggest consolidated arbitrations administered by a major arbitral institution in Indonesia. The arbitration was initiated by more than 30 retail customers on the basis of more than 70 contracts. This entailed an extensive evidentiary process involving a substantial amount of documentary evidence, factual witnesses, and experts covering capital markets, contract law, criminal law, and even forensics issues. This required tight coordination among all related parties, including the experts, the factual witnesses, and the client itself to ensure that the work is done in a harmonious way.
The claimants claimed damages in excess of USD 11 million, which is one of the highest valued cases handled by LAPS SJK. The case was ultimately decided on a question of law, i.e., the meaning of “joint and several” liability under the Indonesian Civil Code. Our team successfully persuaded the tribunal that our client was not jointly and severally liable under the contracts. The tribunal awarded the claimants only 5% of the claimed amount on an ex aequo et bono basis.
Our team was led by Melati Siregar with the support of Nikki Krisadtyo, Ramadinan Saptara, and Astrid Adelya Natasya. We would like to thank our client for entrusting us in handling this case.
Congratulations to the team and the client!