This past September, U.S. District Court Judge Lewis J. Liman of the Southern District of New York granted LPGM’s motion for summary judgment on behalf of its Taiwanese telecom manufacturing client, securing a full recovery of $9.1 million, plus attorneys’ fees and interest, for breach of a distributor agreement by its counterparty, which alleged to have assigned the contract to an insolvent, related company without the necessary written consent.
LPGM’s manufacturing client had been producing set-top cable boxes for the U.S. market for several years when its counter-party distributor stopped paying its invoices and ultimately claimed that it was no longer a party to the distributor agreement, as it had unilaterally assigned it to a related company that also failed to pay for $9.1 million in product. After vigorously fighting the breach of contract claim for over a year, the client’s counterparty was required to pay every outstanding, unpaid invoice based on the Court’s ruling that under settled New York law, the distributor agreement’s assignment had never been consented to by the manufacturer, a requirement of the parties’ contract.
LPGM’s commercial litigators regularly represent both local and international businesses in matters alleging breach of contract, breach of fiduciary duty, tortious interference with contract and other claims involving business disputes between parties in various industries.
Contact: LPGM Partners, Robert A. Giacovas, rgiacovas@lpgmlaw.com and Lainie E. Cohen, lcohen@lpgmlaw.com; LPGM Associate, Jacob Englander, jenglander@lpgmlaw.com
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