Nexteer Automotive Corporation v. Korea Delphi Automotive Systems Corporation
Filing
74
AMENDED JUDGMENT confirming in part International Arbitration Award per stipulation 73 Signed by District Judge George Caram Steeh. (MBea)
UNITED STATES DISTRICT COURT
IN THE EASTERN DISTRICT OF MICHIGAN
SOUTHERN DIVISION
NEXTEER AUTOMOTIVE
CORPORATION,
Plaintiff,
Case No.: 2:13-cv-15189-GCS-LJM
Hon. George Caram Steeh
v.
KOREA DELPHI AUTOMOTIVE
SYSTEMS CORPORATION (now
ERAE AUTOMOTIVE SYSTEMS
CO., LTD.),
Defendant.
_________________________________________________________________/
AMENDED JUDGMENT CONFIRMING IN PART INTERNATIONAL
ARBITRATION AWARD
In accordance with the Memorandum Opinion and Order entered on May 16,
2017 [Dkt. 67, the “Order”], the Judgment Confirming in Part International
Arbitration Award [Dkt. 71], and the parties’ Stipulation Regarding Entry of
Amended Partial Judgment [Dkt. 73],
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 Amended Partial Judgment below.
4825-8771-5402.4
It is further ORDERED AND ADJUDGED that Defendant erae
Automotive shall pay Plaintiff Nexteer the amount of $5,765,401.
It is further ORDERED AND ADJUDGED that Defendant erae
Automotive shall pay Plaintiff Nexteer pre-judgment interest on the $5,765,401
amount referenced in the preceding paragraph, calculated in accordance with
MCL § 600.6013(8), from December 28, 2016 through the date of this Amended
Partial Judgment. Calculated through June 14, 2017, this interest amounts to
$64,333.67, with the daily interest of $383.30 for each additional day after June
14, 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 pre-judgment 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
1
Based on MCL § 600.6013(8), the daily interest rate changes on July 1 and
January 1 of each year, with interest compounded annually.
furnish adequate proof of its halfshaft and premium joint 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, in light of erae Automotive’s deposit of the amount of $3,000,000
in accordance with the terms of the Court’s Order to Deposit Funds as Security for
Partial Stay as to Derivative Royalty Provision Only (Dkt. #72).
It is further ORDERED that this Amended Partial 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 Amended Partial 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).
It is further ORDERED that the entry of this Amended Partial Judgment
does not restart the automatic stay period under Fed. R. Civ. P. 62(a), which
continues to run from the date of the original Partial Judgment’s entry on June 2,
2017.
s/George Caram Steeh
Hon. George Caram Steeh
United States District Judge
Dated: June 19, 2017
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