Mediated by AMERICORD^®

·         Two geotechnical engineering firms, one based in the Netherlands, the other in Texas merged their operations.   Both had worldwide operations and realized that their respective representations and warranties regarding such matters as equipment owned and work in progress would likely be determined to be incomplete or inaccurate to some degree.  The merger agreement provided for the individuals who were the former shareholders of the entity that felt it had been “shorted” to bring a claim against the other group.  The remedy, should the claim be sustained, was to be a grant of additional shares in the merged enterprise.  The agreement further provided that if the parties were unable to resolve any such dispute by bilateral negotiation, the matter would be determined by binding arbitration venued in London, and conducted pursuant to the arbitrations rules of the International Chamber of Commerce.  Transaction costs for this process were estimated at $500,000.  The parties elected to try mediation, and after 3 sessions over two weeks, settled their dispute in mediation. Executives from both formerly opposed camps reported later that the mediation was credited with saving the merger, which had worked out extremely well for all involved.

·         Two multinational companies were involved in a dispute over a failed business venture.  One was to have supplied raw materials in quantities specified by the other who would manufacture finished product volumes in accordance with its own business forecasts.  Each organization blamed the other’s faulty information and judgment for the failure and attendant costs incurred.  This was an early, pre-litigation intervention with nearly a million dollars at issue.  The dispute was resolved after three all-day mediation sessions in alternating cities.

·         A class action alleging improper interest calculation on behalf of approximately 50,000 consumer borrowers in 18 states was commenced against a lending institution.  The mediation involved lawyers from New York, California, Georgia and South Carolina.  Four sessions were held in two different cities over a period of six months, and resulted in a settlement of $7.1 million.

·         After selling one of his many businesses to a multinational conglomerate, a successful entrepreneur sued the buyer.  The seller claimed that his reliance on the buyer’s false representations during the acquisition negotiations caused him agree on a price millions of dollars below what he would have been able to negotiate had the buyer been truthful.  This matter settled after two days mediation, with the plaintiff and defendant agreeing to participate in a new and unrelated joint venture.  The defendant company agreed to prices charged by plaintiff for services rendered in the new venture above market rates, in lieu of damages in settlement of the dispute brought to mediation.

·         Two equity owners of a national chain of personal care boutiques were unable to agree on their relative shares of year-end distribution of Subchapter S profits.  Failure to reach agreement would have created significant corporate tax liability.  The personal aspects of the dispute centered around their relative contributions to the business over the years and how that mix of talent should be reflected in the profit distribution.  Only days remained to make the decision by year-end; the matter was resolved in one mediation session after months of wrangling, and the partners agreed a new compensation structure for the next year.

·         Two engineering college roommates had started a high-tech product manufacturing business out of garage 17 years before the dispute.  Five of the eight shareholders sided against the founder, who was the “genius/inventor”, alleging that his lack of management skill unfairly oppressed the minority shareholder group, and commenced a lawsuit to force a buy-out.  After two years of litigation, the case settled in one 15-hour mediation session.