LAWFUEL- The Law Newswire – DLA Piper’s litigation team led by Janet Legrand was successful in limiting the claim brought by a vulture fund, Donegal International, against the Government of the Republic of Zambia. The claim was reduced to $15.7 million from the $55 million that was originally demanded.
The decision of Mr Justice Andrew Smith follows the first announcement in February that Zambia would not be made to pay the $55 million claimed by Donegal after Zambia failed to make the necessary payments under the terms of a settlement agreement.
The judge has also reduced Donegal’s claim for costs of £1.7 million by one-third because Donegal’s key witnesses gave dishonest testimony that led to unnecessary work for Zambia’s defence team.
Janet Legrand, litigation partner at DLA Piper, commented: “This is an important judgment for Zambia and other countries that find themselves in similar positions with their distressed sovereign debt. We and our client are delighted that Donegal’s penal claim has been reduced by US$ 40 million as a result of our defence of the action.”
On 4 May 2007 a judgment is due on the Government of Zambia’s corruption claims against former Zambian President, Frederick Chiluba. DLA Piper are also the lead lawyers for the Government of Zambia in this action.