Bet-the-Company Arbitration Ends In Favorable Outcome
January 27, 2012 Case Study
On January 27, 2012, a panel of three arbitrators appointed by the AAA rendered a decision in favor of Beck Redden clients in a bet-the-company dispute over attorney’s fees. More than a decade ago, the Firms’ clients had entered into an agreement with General Electric concerning the development of a natural gas storage project in Great Britain. That relationship was eventually terminated by a formal dissolution agreement, which included mutual releases and reciprocal indemnity agreements among the parties. Subsequent disagreements led to long and costly litigation between the parties, in which Beck Redden’s clients prevailed at trial but later lost on appeal. At the end of that litigation, GE filed an action seeking a multi-million dollar attorney’s fee recovery under the release and indemnity provisions of the dissolution agreement. The AAA panel initially dismissed the release claim as a matter of law, then denied the indemnity claim on the merits following the final hearing. The arbitration was handled by Beck Redden partners Fields Alexander and Russell Post.