Miller Barondess Wins Over $11 Million for a Private Equity Client and Defeats $25 Million Counterclaim.

Miller Barondess Wins Over $11 Million for a Private Equity Client and Defeats $25 Million Counterclaim.

P-Wave Holdings, LLC, an affiliate of The Gores Group (a Los Angeles–based global private equity firm) sued for breach of a reseller agreement in international arbitration proceedings against two large telecommunication infrastructure companies and their parent company based in Lebanon.  The Arbitrator issued a final award on March 22, 2016 awarding our client (P-Wave) over $11 million because of respondents’ breach of a reseller agreement [Read the final award].  Our client was awarded the entire amount it sought plus interest and attorneys’ fees.  Respondents’ counterclaim for in excess of $25 million was rejected in its entirety.  The Summary of Award provides:

“The Arbitrator finds the issues in favor of Claimants and finds that Respondents are jointly liable to Claimants for damages, attorneys’ fees, costs of arbitration, pre-judgment interest and administrative fees of the International Center for Dispute Resolution (ICDR) in the total amount of $11,251,871.00 and awards that sum to Claimants jointly from Respondents jointly. The Arbitrator denies the counterclaim of the Serta entities in its entirety, including its request for declaratory relief.”

The dispute involved complex issues of international law and bankruptcy.  The Arbitrator also addressed important issues relating to whether the parent company was released and/or a novation took place—ultimately determining that the parent company was not released, there was no novation, and the parent was on the hook for the entire award.  So we obtained a complete victory including joint and several liability against all three respondents.  The case was litigated in front of the International Centre for Dispute Resolution, the international division of the American Arbitration Association and the Arbitrator was William B. Fitzgerald (P-Wave Holdings, LLC et al. v. Resource Group Holding, S.A.L. et al., AAA Case No. 50-494-T-00901-13).  Dan Miller served as lead trial counsel for Miller Barondess.  [Read Dan Miller’s bio]  Respondents were represented by Reed Smith and subsequently by Chadbourne & Parke (Reed Smith withdrew as counsel after the evidentiary hearing).  The case was reported on by the Daily Journal on April 7, 2016.