Steptoe, Piliero Goldstein Settle $14.2 Million Commercial ICDR Arbitration

Piliero Goldstein, LLP and Steptoe & Johnson LLP are pleased to announce that their client, Orckit Communications Ltd., has successfully concluded its two-year arbitration before the International Centre for Dispute Resolution (the international division of the American Arbitration Association) (ICDR) against Conexant Systems, Inc. and its predecessors in interest.  Following the issuance of an Interim Award in favor of Orckit in August, Conexant has agreed to pay Orckit $14.2 million plus Orckit’s attorneys’ fees as a final resolution of the parties’ dispute.  Michael C. Miller, a former partner of Piliero Goldstein and now a partner of Steptoe, and Richard Brosnick, a current partner of Piliero Goldstein, led the trial team.

Orckit commenced the ICDR arbitration in 2005 to recover damages it claimed to have suffered as a result of alleged breaches of a Supply Agreement with Globespanvirata Inc. (which was later acquired by Conexant) relating to semiconductor chips used in the telecommunications industry.  Following a 12-day hearing on the merits conducted by Messrs. Miller and Brosnick, the three-member ICDR arbitration panel issued an Interim Award in favor of Orckit, ordering Conexant to pay Orckit $12 million, plus interest and costs to be determined, in compensation for damages caused by Globespanvirata’s breaches of the supply agreement.  The settlement occurred during the course of subsequent proceedings related to the determination of applicable interest and payment of reasonable attorneys’ fees.

Regarding their victory, Messrs. Miller and Brosnick commented that “the ICDR Panel’s Interim Award and the settlement that followed on its heels has vindicated Orckit’s long legal struggle to enforce its negotiated contract rights.”