On behalf of a Taiwan manufacturer of consumer products, Clausen Miller brought an arbitration action against a U.S. distributor for breach of contract. Pursuant to the parties’ manufacturing agreement, the arbitration took place in Hong Kong. The Taiwan manufacturer made a claim against the U.S. distributor for charges the distributor made against its accounts payable for alleged product returns from retailers. The manufacturer argued that the charges lacked sufficient supporting evidence and were far in excess of what would be permitted under the agreement and at equity. In what was a very fact-intensive arbitration proceeding, the arbitrator ruled in favor of the manufacturer on its claim for excess charges and rendered an award 100% more than what the distributor offered in settlement.
J. Ryan Hemingway in Clausen Miller’s Shanghai office represented the Taiwan manufacturer.
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