Originally from ICDR Awards and Commentaries - Volume 2

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ICDR CASE NO. 321-08

PARTIAL FINAL AWARD AND FINAL AWARD

American Arbitration Association (AAA)
International Centre for Dispute Resolution (ICDR) 

IN THE MATTER OF ARBITRATION BETWEEN: PUBLIC WAREHOUSING COMPANY K.S.C. and PROFESSIONAL CONTRACT ADMINISTRATORS, INC., (Claimants) and SUPREME FOODSERVICE AG and SUPREME FOODSERVICE GmbH & Co KG, (Respondents) ICDR Case No. ***** 321-08

Subject Matters: 
Breach of contract; wrongful termination; failure to implement post-termination provisions; fraudulent inducement and false representations; “faithless servant” doctrine (NY); unenforceability of an agreement procured by illicit means; adverse inferences.

Findings: 
The Tribunal rejected Respondents’ defenses based on false representations, the “faithless servant” doctrine and illicit procurement of the contract. However, it found in favor of Respondents on the breach of contract claim because Claimants had failed to supply the information requested.  The Tribunal nonetheless required Respondents to continue making post-termination payments through the life of the Zone 3 contract.

Parties: 
Claimants: Public Warehousing Company K.S.C. is a Kuwaiti company, Professional Contract Administrators, Inc. is organized and existing under the laws of the State of Arizona.
Respondents: Supreme AG is a Swiss company, and Supreme GmbH is a German company and a wholly-owned subsidiary of Supreme AG.

Place of Arbitration: 
New York, New York (USA)