Pacific Sogo to appeal ruling to compensate bank

Pacific Sogo Department Store (太平洋崇光百貨) yesterday expressed regret over a Taipei District Court verdict that it should pay a local bank NT$400 million (US$12 million) in compensation for breaking a contract.

Pacific Sogo will lodge an appeal against the ruling, it said in a press release yesterday.

The dispute dates back to late 2002, when Far Eastern Group (遠東集團) acquired Pacific Sogo and planned to initiate a new round of negotiations with the department store's co-branded credit card partner Cathay United Bank (國泰世華銀行).

Far Eastern considered the original contract to be flawed, but the two sides have failed to reach a consensus on the cardholders' rights and interests.

"Pacific Sogo and Far Eastern have factored in the possible compensation risks stemming from the case. The ruling will not impact on the group's profitability and financial condition this year," the statement read.