Global engineering and aerospace company resolves ICC dispute with its engine supplier
Client(s) Global engineering and aerospace company
Jones Day successfully settled a private arbitration before the International Chamber of Commerce ("ICC") on behalf of a global engineering and aerospace company. The dispute stemmed from a multi-billion dollar aircraft development program for which the client was the primary manufacturer. The program's engine supplier sought nearly $300 million in damages resulting from the manufacturer's alleged delay to the program. The manufacturer argued that the engine supplier concurrently delayed the program by failing to deliver a certifiable engine for the aircraft.
Following extensive substantive briefing, several witness statements and expert reports, and a complex document discovery process, the arbitration was scheduled to go to hearing in April 2020. However, after Jones Day submitted the client's final brief in February, supported by extensive aviation and other expert reports, the parties began negotiating a settlement and came to an agreement in March 2020, which was ultimately approved by the ICC. The agreed-upon settlement required Jones Day's client to pay less than one percent of the total amount that the engine supplier sought in damages and commit additional funds for work to be completed by the supplier in the future.