Nexteer Automotive Corporation v. Korea Delphi Automotive Systems Corporation

Filing 71

JUDGMENT confirming in part International Arbitration Award 68 MOTION for Entry of Judgment. Signed by District Judge George Caram Steeh. (MBea)

UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF MICHIGAN
SOUTHERN DIVISION
NEXTEER AUTOMOTIVE
CORPORATION,
Plaintiff,

Case No. 13-cv-15189

vs.
Hon. George Caram Steeh
KOREA DELPHI AUTOMOTIVE
SYSTEMS CORPORATION (now
known as ERAE AUTOMOTIVE
SYSTEMS CO., LTD),
Defendant.

JUDGMENT CONFIRMING IN PART
INTERNATIONAL ARBITRATION AWARD
In accordance with the Memorandum Opinion and Order entered on
May 16, 2017 [Dkt. # 67, the “Order”],
It is ORDERED AND ADJUDGED that Award No. 140 of 2016
issued by the Singapore International Arbitration Center on December 28,
2016 in the matter of Nexteer Automotive Corporation v. erae Automotive
Systems Co., Ltd., Arb. Nos. 106, 229, 230 and 231 of 2013 (the “Award”)
is hereby CONFIRMED in part, as set forth in the Order and this
Judgment below.

-1-

It is further ORDERED AND ADJUDGED that Defendant erae
Automotive shall pay Plaintiff Nexteer the amount of $5,876,666.
It is further ORDERED AND ADJUDGED that Defendant erae
Automotive shall pay Plaintiff Nexteer pre-judgment interest on the
$5,876,666 amount referenced in the preceding paragraph, calculated in
accordance with MCL § 600.6013(8), from December 28, 2016 through the
date of this Judgment. Calculated through May 24, 2017, this interest
amounts to $57,370.60, with the daily interest of $390.70 for each
additional day after May 24, 2017.1
It is further ORDERED AND ADJUDGED that, in addition to the
amounts listed in the preceding paragraph, Defendant erae Automotive
shall pay Nexteer a royalty of 4.5% on all sales of the KPJ halfshafts from
November 30, 2015, together with an additional amount representing prejudgment interest calculated in accordance with MCL § 600.6013(8) for all
sales of these products between November 30, 2015 and the date of this
Judgment.
It is further ORDERED AND ADJUDGED that, as set forth in the
Order, erae Automotive shall make future royalty payments on a quarterly
basis, and furnish adequate proof of its halfshaft and premium joint
Based on MCL § 600.6013(8), the daily interest rate changes on July 1 and January 1
of each year, with interest compounded annually.
1

-2-

product sales 30 days prior to the due date for each quarterly royalty
payment.
It is further ORDERED AND ADJUDGED that Nexteer shall have the
right to audit the sales and other financial records of erae Automotive and
companies under erae Automotive’s control to confirm compliance with
the obligation to pay royalties pursuant to the Award. Any such audit is to
be conducted by a mutually acceptable independent auditor, with the
costs of the audit to be evenly split by the parties. Erae Automotive shall
maintain the records of its sales of the KPJ halfshafts or any premium joint
product derivative of KPJ for a period of at least five years, and make
them available to the auditor during normal business hours subject to a
three-day written notice.
It is further ORDERED that all payments to Nexteer shall be made by
wire transfer in U.S. currency.
It is further ORDERED that enforcement of the Award is STAYED
only with regard to the 4.5% royalty on all future sales of any premium joint
product derivative of KPJ from November 30, 2015, pending completion of
the Singapore review process, provided that erae Automotive posts bond
in the amount of $3,000,000 on or before June 8, 2017.

-3-

It is further ORDERED that this Judgment does not preclude Nexteer
from applying for a supplemental Judgment upon the lifting of the stay
referenced in the preceding paragraph, seeking to confirm the Award with
regard to the 4.5% royalty on all future sales of any premium joint product
derivative of KPJ from November 30, 2015, and seeking pre-judgment
interest on these additional amounts or any attorney’s fees and costs
related to the enforcement of the derivative royalty provision in the Award.
It is further ORDERED that this Judgment does not preclude Nexteer
from making an application for recovery of attorney’s fees, costs and
related interest incurred after the entry of the Award consistent with
Nexteer’s

rights

pursuant

to

the

underlying

Award,

Exclusive

Manufacturing & Supply Agreements between the parties, and/or Fed. R.
Civ. P. 54(b).
Dated: June 2, 2017
s/George Caram Steeh
GEORGE CARAM STEEH
UNITED STATES DISTRICT JUDGE

CERTIFICATE OF SERVICE
Copies of this Order were served upon attorneys of record on
June 2, 2017, by electronic and/or ordinary mail.
s/Marcia Beauchemin
Deputy Clerk

-4-