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Victory for U.S. Client Against Chinese Company Highlights Benefits of International Arbitration 

A victory obtained by Hodgson Russ partner Joseph P. Goldberg before the Arbitration Institute of the Stockholm Chamber of Commerce demonstrates the value to companies doing business internationally of including international arbitration provisions in contracts entered into with foreign entities.

In this case, our U.S.-based client entered into an agency agreement with a Chinese company, pursuant to which the Chinese company agreed to pay certain commissions to our client in consideration for it putting forth its best efforts to ensure that the Chinese company would become the exclusive equipment supplier for a project to install a government-sponsored broadband network in Europe. The Chinese company won the contract but refused to pay our client any commissions, claiming that it did not fulfill applicable requirements of the initial contract and a later supplement.

The agreement stipulated that resolution of any disputes would be decided by the Stockholm Chamber of Commerce. Hodgson Russ commenced the arbitration proceeding, and the hearing lasted three days. The panel ultimately agreed with our client’s position that the Chinese company engaged in “ongoing and serial breaches of contract,” and entered judgment in favor our client awarding damages, plus interest and reimbursement of the cost of the arbitration, all of which were collected in full.