Prominent Japanese manufacturer arbitrates ICC claim dispute against former supplier for its repudication of exclusive long-term supply agreement
Clients Manufacturing company
Jones Day represented a prominent Japanese manufacturer of marine equipment in an ICC arbitration against a U.S. company for its repudiation of a long-term supply agreement. The Japanese company contracted with the U.S. manufacturer for the supply of critical, explosion-proof components for a state of the art ballast-water treatment system, designed to meet high market demand resulting from regulatory changes affecting the maritime industry. After years of research and development, the U.S. manufacturer repudiated the contract before it supplied any of the critical components, thereby preventing the Japanese company from exploiting this market opportunity. Jones Day sought significant damages on behalf of its client, including substantial lost profits due to the missed opportunity. After the arbitration was well underway, the U.S. manufacturer agreed to pay substantial sums in settlement of the dispute.