Top Defense Verdicts -- Consolidated Smart Broadband Systems v. DirecTV Inc.

Kirkland & Ellis LLP partner Michael E. Baumann enjoyed the legal dispute involving his longtime client DirecTV because of the short timespan for trial preparation and proceedings.

Baumann led the Kirkland team representing DirecTV that successfully defeated a $70 million breach of contract claim from Consolidated Smart Broadband Systems LLC.

Consolidated, which is based in Los Angeles, contracted with DirecTV to install and maintain television and Internet services for multi-dwelling units such as apartment buildings.

The plaintiff alleged that DirecTV violated its contract when the satellite television provider instituted a credit check policy and required upfront fees for customers.

The contract required the companies to enter into expedited arbitration, which meant both sides had to prepare witnesses and research documents on very short notice.

"You have to have a strong relationship with the client, and the client has to be willing to direct resources on an expedited basis," Baumann said. "You have to be very focused in your requests, and they have to make workers stop their day jobs and make them available as witnesses."

Under the expedited arbitration rules, both legal teams had days to prepare for direct and cross-examination of witnesses, without the extensive discovery and pre-trial scuffles that usually accompany multi-million dollar legal battles.

Los Angeles-based JAMS arbitrator Charles G. Bakaly Jr. heard testimony and oral arguments over four days in April and May before issuing a ruling for DirecTV on June 1.

Baumann said the decision from Bakaly, who recently retired from JAMS, is binding and cannot be appealed unless a party can show that Bakaly overstepped his designated authority.

Baumann cautioned that expedited arbitration is not for all companies and legal disputes. While clients might enjoy the reduced legal costs, they risk being surprised by questions that come up in arbitration that could have been addressed with extra discovery or preparation.

"It makes it a lot more interesting for someone like me to cold cross-examine witnesses," Baumann said.

- KEVIN LEE

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