U.S. chemical company obtains victory in multi-party ICDR arbitration relating to chemical manufacturing joint venture in Taiwan

Client(s) U.S. chemical manufacturer

Jones Day obtained an award in favor of a U.S. chemical company in a three-party arbitration arising from its acquisition of a substantial interest in a Taiwanese chemical manufacturing joint venture. As part of that transaction, the Taiwanese parent negotiated a put right, entitling it to sell its stake in the joint venture to Jones Day’s client for $100 million. Our client, however, simultaneously negotiated a side agreement requiring a U.S. counterparty to buy the Taiwanese parent’s interest if it exercised the put. When the Taiwanese parent exercised its put option, the U.S. counterparty refused to fulfill its obligation to purchase the shares. The Taiwanese parent commenced ICDR arbitration against our client, who then brought the U.S. counterparty into the arbitration, asserting claims against it and counterclaims against the Taiwanese parent. After multiple phases of submissions and two separate evidentiary hearings, Jones Day obtained a net award in our client’s favor, including an award of a significant portion of its attorneys’ fees and costs.