05 Dispute Resolution
Prompt and Effective in Litigation and ADR
Shay & Partners has an established track record of successfully obtaining relief for our clients through litigation, administrative proceedings and Alternative Dispute Resolution (ADR) procedures. Our skilled attorneys represent corporate clients in litigation at all levels of the Taiwanese court system. We also specialize in various ADR procedures including arbitration and mediation. We pride ourselves on our ability to resolve disputes promptly, satisfactorily and in a cost-effective manner saving the client time and money.
Taiwan – United States (NY) – Singapore Firms Collaborate to Vindicate Client’s Rights and Obtain Large Settlement Arising from a Coronavirus Defense in a Breach of M&A Contract Action
A client of Globalaw Taiwan member, Shay & Partners, successfully negotiated the sale of a closely held business (the “Client”) for US$70 million to a publicly traded European company (“Euro Corp.”). When Euro Corp. threatened to delay final payment of US$13 million in March of 2020 citing the imperative need to preserve “liquidity” to protect its business, shareholders and workers as a result of the novel coronavirus pandemic, Shay & Partners brought in Olshan Frome Wolosky LLP, USA (NY) firm, to advise the Client on New York law, which governed the M&A contract and dispute. Olshan analyzed key provisions and attempted to resolve the matter. After multiple months of unsuccessful settlement discussions, Olshan contacted Globalaw Singapore member firm, Kelvin Chia Partnership, who served as Olshan’s co-counsel in preparing and filing a claim for arbitration with the Singapore International Arbitration Centre (“SIAC”) and naming its arbitrator (while New York law governed the M&A contract and dispute, the contract’s dispute resolution provisions placed venue and jurisdiction in Singapore with the SAIC). The three Globalaw member firms drafted a claim emphasizing the forty years the Client’s family members spent building a successful industrial company, before selling it to Euro Corp. and allowing Euro Corp. to pay a portion of the purchase price post-closing. In the meantime, Euro Corp. reported in its public filings how additive the acquisition was to the company’s consolidated earnings and was among the most important operational entities of 100’s it described in its annual report. The case ultimately resolved so successfully that the Client obtained a settlement that included all delinquent M&A payments, damages and reimbursement of all legal expenses, which in total exceeded the maximum legal damages it would have been entitled to had it prevailed in the arbitration.
One novel issue counsel faced were client principals who rejected many good settlement offers because of their ultimate interest in vindication, unwillingness to allow Euro Corp. to control the outcome, and desire to go to arbitration to obtain a ruling no matter the outcome. This ultimately contributed to Euro Corp.’s willingness to overpay to settle in order to avoid proceeding to full hearing thus proving the axiom from the old Fram oil filter commercials from US television applies equally to deferred payments due under an M&A contract: “you can pay me now or you can pay me later” with interest and attorneys’ fees.
The attorneys involved were Kyle C. Bisceglie and Tara Richelo from Olshan Frome Wolosky LLP, Arthur Shay from Shay & Partners, and Jolyn Khoo and Bryan Chan from Kelvin Chia Partnership. A large international law firm represented Euro Corp.
International Discovery – USA (Texas) and Taiwan
A client of our USA (Texas) member (Jackson Walker) was engaged in litigation in the US and needed to obtain documents and other information held by two Taiwan companies. Jackson Walker turned to Taiwan member (Shay & Partners) to assist in obtaining discovery against the Taiwanese companies by way of letters rogatory issued by the US court requesting international judicial assistance. With Shay & Partners’ help, the letters rogatory were prepared and transmitted through the proper diplomatic channels to the Taiwanese district courts with jurisdiction over the target companies.
Debt Collection – Uruguay and Taiwan
AGROSAN SOCIEDAD ANÓNIMA, a Uruguayan company had been in long discussion with its buyer in Taiwan for the debt unsettled. The Globalaw member in Uruguay believed that it would be only possible to make progress if Shay & Partners take over this matter and negotiate with the debtor directly. For this purpose, corporate attorneys of Shay & Partners drew on the resources of its litigation team to deliver coordinated, seamless service to the client. The debtor rendered a promissory note and subsequently paid in full the debt owed to AGROSAN SOCIEDAD ANÓNIMA.
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