Agfa-Gevaert in Successful Defense Before ICC Arbitration Panel
February 03, 2010
Cleary Gottlieb has successfully defended long-time client Agfa-Gevaert N.V. and its affiliated companies against numerous claims, amounting to over €265 million, brought before an ICC arbitration panel by AgfaPhoto Holding GmbH. In 2004, Agfa-Gevaert sold its former consumer imaging division to APH, a vehicle organized by the former consumer imaging management together with a group of investors. Approximately seven months after the purchase was completed, the spun-off business became insolvent. APH accused Agfa-Gevaert and its management of defrauding APH regarding the financial strength of the business and alleged that Agfa-Gevaert had breached numerous contractual obligations and intentionally caused the insolvency of the newly spun-off business.
In a final award issued December 17, 2009, the arbitral tribunal rejected all of APH’s claims, and fully exonerated Agfa-Gevaert. The tribunal also ordered APH to pay Agfa-Gevaert’s fees and expenses of approximately €6 million.
This is the second significant arbitration victory won by Cleary Gottlieb on behalf of Agfa-Gevaert in recent months. In September of last year, in a dispute over the termination of a trademark license agreement, the same arbitral tribunal rejected a damages model presented by APH asserting damages of over €260 million. The tribunal ruled that Agfa-Gevaert prevailed on more than 95% of that arbitration and awarded Agfa-Gevaert approximately €3 million in legal fees.