Contractual Disputes (Technology) Case Studies
Multi-party dispute acting for a UK subsidiary of a US company
We were asked to act for the UK subsidiary of a US company which supplied polymers for the manufacture of domestic heating oil tanks.
What was the dispute about:
The manufacturer of the tanks had received a number of complaints that the tanks were leaking and sought to blame the polymer as being unfit for the purpose of manufacturing the storage tanks.
The polymer itself was originally produced by a Danish company. Our client added pigment to colour the polymer before supplying to its customers. The case involved extensive expert analysis of the composition of the polymer together with expert opinion on the significance of factors including the process of manufacture of the tanks and the design of the tanks as being the likely causes of leaking.
In addition to the technical evidence with regard to the likely cause of the tank failures, the case involved diverse legal issues including whether Danish, Norwegian or English law applied to the contract with the producer of the polymer and the effect of terms and conditions limiting liability for any loss attributable to the quality of the polymer supplied.
The case raised legal issues as to whether, on a proper construction of the finance agreement, the finance company was entitled to withdraw facilities. What the client required was a swift and pragmatic solution to enable it to continue trading. The task was to negotiate termination of the finance agreement to allow the client to obtain finance from an alternative source.
The outcome achieved for the client was the return of invoices held as security by the finance company and the payment of sums due to the client from the finance company. The client duly obtained alternative finance and its business continues to thrive.
Substantial counterclaim withdrawn
Acting for the supplier of advanced electronics for use in fully reclining business class seats being installed in trans-Atlantic aircraft.
The client’s claim for the price was met with a substantial counterclaim alleging that delays in the progress of the project were attributable to defects in the electronic components. The case raised issues regarding responsibility for the design of the seats, the mechanical elements and the interaction with the electronic components.
The matter was resolved by a substantial payment to the client and withdrawal of the counterclaim.
Delays incurred in supply and installation of a crane
We were asked to act for a manufacturer of an overhead gantry crane supplied to a factory in the Middle East. Delays occurred in the supply and installation of the crane and the claim for payment of the price was met with a counterclaim for alleged losses resulting from the delays.
The case raised issues with regard to the proper construction of the client’s terms excluding liability for consequential losses.
A negotiated settlement was achieved.
Significant delays in delivery of components for onward supply
We were asked to act for a supplier of bespoke components for installation in race engines who experienced significant delays in delivery from the manufacturer of components required for onward supply to its customer.
Delays in sourcing and delivery of the components led in turn to difficulties with the end user, including issues as to payment for components supplied and the consequences for the project to develop the race engine.
Advising the client as the matter developed, and assisting them to deal with allegations that the components did not conform to the contract specification.
The situation required a combination of technical evidence and legal analysis which then enabled the client to conduct negotiations with its customer with a view to securing an acceptable payment arrangement.
If you need advice and help with a dispute, contact us today.