Clientron Corp. v. Devon It Inc.
Published: Oct. 17, 2015 | Result Date: Aug. 28, 2015 | Filing Date: Jan. 1, 1900 |Case number: 2:13-cv-05634-MMB Summary Judgment – $6,500,000
Facts
Clientron Corp., a Taiwanese company, sold computer-related equipment to Devon IT Inc. Clientron delivered the equipment, resulting in multi-million dollar invoices, which Devon IT did not pay. Clientron initiated an arbitration in Taiwan, resulting in a $6,574,546.17 million judgment in its favor. It then sued Devon IT Inc., its CEO John Bennett and his wife Nance DiRocco for fraud, breach of contract and confirmation of arbitration award.
Contentions
PLAINTIFF'S CONTENTIONS:
Clientron contended that Bennett falsely represented that defendants would pay its late invoices. It further alleged that defendants breached their contractual obligations by failing to pay Clientron. It also argued that the court was authorized to enforce the foreign arbitration award.
DEFENDANT'S CONTENTIONS:
Devon IT contended it did not pay Clientron in full, citing quality issues and over-billing. Devon IT argued that the products in question were not subject to the arbitration provision because the contract was never amended to include them. Defendants contended that Clientron sued Devon IT Inc. in the Eastern District of Pennsylvania to enforce the arbitration award, and subsequently, brought this second action against Devon IT and its CEO.
Initially, the judge did not enforce the arbitration award and consolidated the two cases for trial.
Result
The court granted Clientron's motion for summary judgment, enforcing the Taiwanese award, and denied Devon IT's motion for summary judgment. It also awarded plaintiff sanctions against Devon IT in the amount of $44,320.50 for Devon IT's discovery violations.
Other Information
Summary judgment motions remain pending on other issues. FILING DATE: Sept. 25, 2013.
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