ICC Rules: 1998

Claimant: Equipment manufacturer and supplier (USA)

Respondent: Equipment manufacturer (France)

The parties entered into an agreement pursuant to which Claimant was appointed as exclusive sales agent for Respondent in North America. After a number of years of successful collaboration, problems arose between the parties following the launch of a new line of equipment. The initial unreliability of the new equipment caused considerable customer dissatisfaction. Together, the parties sought solutions to the problems, including staff secondment and an increase in the stock of spare parts on consignment with Claimant. Meanwhile, Respondent encountered serious financial difficulties in France, resulting in the replacement of the company's principal by a crisis manager. In his salvage attempts, the latter demanded immediate payments from Claimant, which contested such demands. The relationship between the parties soured, and Respondent threatened to terminate the agreement failing payment of the consignment inventory and the debt due to it. Claimant tendered Respondent a sum, which was refused, upon which it submitted its Request for Arbitration. Five days later, Respondent initiated state court proceedings, which the sole arbitrator reported as indicated below, before going on to examine the parties' claims.

'On . . . Claimant filed an action in Wisconsin State Court requesting preliminary injunctive relief in aid of arbitration and alternatively alleging violations of the Wisconsin Fair Dealership Law ("WFDL"). The Court issued a preliminary order enjoining Respondent from terminating the Agreement pending Arbitration. The matter was subsequently removed to the United States District Court for the Western District of Wisconsin.'