Cases & Deals

Diebold wins Indonesian court ruling

Client(s) Diebold, Incorporated

Jones Day successfully represented Diebold, Incorporated, one of the world's leading producers of automated teller machines, and its subsidiary, PT Diebold Indonesia. The Indonesian court held that it lacked the authority to hear the matter, which paves the way for Diebold to defend those claims, if necessary, through ICC arbitration in New York. The former Diebold distributor, PT Mitra Integrasi Komputindo, an Indonesian company, claimed damages of US$111 million for the alleged wrongful termination of a distributorship agreement and injury to its business reputation. It sought relief in the Indonesian courts despite a provision in the agreement that required all disputes to go to arbitration in New York. The court's ruling allows Diebold's rights and interests to be impartially enforced and protected. Additionally, the necessity of bringing an arbitration in New York may deter the former distributor from making frivolous claims.

On Diebold's behalf, John Majoras of Jones Day's Washington Office put together and led a defense team with significant, substantial support from Chong Yee Leong, Chong Boon Leong, and Elaine Chao from the Jones Day Singapore Office. They provided Diebold with local ground support in Southeast Asia, and along with the Washington Office, coordinated the development and implementation of a strategy designed to achieve Diebold's objectives. The Singapore team also provided input on the legal and practical resources and options in Indonesia available to Diebold. Indonesian local counsel, Todung Mulya Lubis of Lubis, Santosa & Maulana Law Offices, formally represented and advised Diebold on Indonesian law. In addition, the Jones Day team helped gather evidence and information and coordinated efforts with consultants to develop strategies aimed at preserving the integrity of the Indonesian court proceedings and deterring external influences.

The Jones Day-led cross-border team formulated and presented a comprehensive and highly successful strategy that enabled Diebold to achieve its objectives and enforce the terms of its agreement.