A Los Angeles jury has awarded two Taiwanese companies US$46.7 million in a lawsuit over a contract to sell laptops to Wal-Mart.
Plaintiffs BHE Group, Inc and GBM International, Inc (精成國際), two subsidiaries of the Taiwanese athletic footwear manufacturer Pou Chen (寶成), won Friday’s verdict, lawyer Skip Miller said on Monday.
“This is a good day for the good guys,” Miller said.
The two companies sued MTS Products and its chairman, Ben Hsia for breach of contract over a joint-venture to import laptops and other electronics to the US for sale at Wal-Mart stores.
Hsia countersued, alleging that Pou Chen was overcharging and dumping outdated products.
“The deal went south fast because they sold us inferior products,” said Stephen Bost, an attorney for Hsia and MTS.
When the dispute arose between the US company and the Taiwanese suppliers, Hsia began withholding funds until the sides could come to an agreement, said Bost.
The total verdict included US$28.4 million in actual damages, which Bost said equals the amount that MTS withheld when the deal soured, plus $9.7 million in lost profits and US$8.5 million in interest.
The jury also awarded Hsia US$1.75 million in lost earnings and US$9.5 million in lost profits.
However, Pou Chen said yesterday in Taipei that it had not invested in either BHE Group or GBM International.
“The lawsuit and the compensation have nothing to do with Pou Chen,” the company said in a filing with the Taiwan Stock Exchange.
ADDITIONAL REPORTING BY KEVIN CHEN
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