Nexteer Automotive Corporation v. Korea Delphi Automotive Systems Corporation

Filing 81

SECOND AMENDED JUDGMENT confirming international arbitration award. 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.
_________________________________________________________________/
SECOND AMENDED JUDGMENT CONFIRMING 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), the Amended Judgment Confirming In Part
International Arbitration Award (Dkt. 74), the parties’ Stipulation to Lift Stay and
Confirm the Derivative Royalty Provision in the International Arbitration Award
and the Order Lifting Stay and Confirming the Derivative Royalty Provision in the
International Arbitration Award
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

4843-3627-2721.2

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
full.
It is further ORDERED AND ADJUDGED that Defendant erae
Automotive shall pay Plaintiff Nexteer the amount of $5,765,401, with Defendant
erae Automotive to receive credit for payments made pursuant to the Award.
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 payment.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 as well as any
premium joint product derivative of the KPJ 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 Second Amended Judgment.

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.

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It is further ORDERED that Defendant erae Automotive shall receive
credit for payments made pursuant to the Award.
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 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 this Second Amended 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

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rights pursuant to the underlying Award, Exclusive Manufacturing & Supply
Agreements between the parties, common law and/or Fed. R. Civ. P. 54(b).
It is further ORDERED that the entry of this Second Amended Judgment
does not restart the automatic stay period under Fed. R. Civ. P. 62(a), which ran
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: October 12, 2017

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