Conflict Management

Testing, Testing 123  a small biotech firm, was very concerned about the delayed development of its diagnostic tools by its European contract partner.  I analyzed the contract and determined there was a possibility to terminate for cause if certain deadlines were observed.  Termination carried the risk of a long legal battle, however, during which time the development of the diagnostic tool would be interrupted, possibly driving our client into bankruptcy. We developed a strategy with the client to increase the pressure on its contract partner and restart the deadlines. Commencement of arbitration still needed to be avoided so that the diagnostic tool would be returned to our client quickly.   We forced the contract partner into a negotiation session in which I presented our arguments in full.  It was obvious that the opposition was broken.  After another round of correspondence, the contract partner agreed to immediate termination of the contract and to return of the diagnostic tool to our client.

Our US Client, a manufacturer of industry vehicles distributed world-wide, discovered that its German contract partner was violating the trademark provisions of their Joint Venture and positioning itself to compete with our Client.  We assisted the Client to establish its claim of breach in a complex, even confusing documentary situation and develop a strategy to resolve the dispute. The business relationship continued to be vital to our Client.  When the German contract partner denied the breach of contract, we suggested preparing a complete request for arbitration setting out the damages of over Euro 50 million and handing it to the partner – without commencing arbitration.  After conducting its legal review of the request for arbitration, the German partner agreed to an orderly disengagement of the Joint Venture over a period of years.  The business relationship remained intact.   Several years later the Client acquired the German company in a friendly transaction.