The case of the day is Cerner Middle East Ltd. v. Al-Dhaheri (D. Mass. 2017). Cerner was a Cayman Islands company with its offices in Missouri. Ahmed Dhaheri was a UAE citizen living in Abu Dhabi. He was one of the two members of iCapital LLC, a UAE company.
In 2008, iCapital made a contract with Cerner for development of a medical IT platform in the UAE. Cerner claimed that iCapital defaulted on its payment obligations. They entered into a settlement and payment agreement that contained an agreement to arbitrate under the ICC rules. iCapital defaulted again, and Cerner demanded arbitration against iCapital and Dhaheri (who was not personally a party to the agreement). The arbitration was held in Paris in 2014. The tribunal issued an award for more than $62 million in damages. It found the agreement was valid and that Dhaheri was acting as iCapital’s alter ego and was therefore bound by the agreement to arbitrate.
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The case of the day is CE Design Ltd. v. HealthCraft Products, Inc. (Ill. App. Ct. 2017). CE Design, a now-defunct Illinois business, brought a class action in Chicago against HealthCraft, an Ontario business, alleging that HealthCraft had sent it and other class members unsolicited faxes. HealthCraft tendered the defense of the case to its liability insurer, ING, a Canadian insurer. ING reserved its rights while it investigated the claim. In the meanwhile, HealthCraft hired its own counsel and agreed to a settlement with CE Design for $543,000 and assignment to CE Design of all of HealthCraft’s claims against ING. The Illinois court approved the settlement without prior notice to ING and entered a consent judgment.
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The case of the day is Iraq Middle Market Development Foundation v. Harmoosh (4th Cir. 2017). The Foundation lent $2 million to Al-Harmoosh for General Trade, Travel, and Tourism, an Iraqi company. The loan agreement had an agreement to arbitrate all “disputes, controversies and claims between the parties which may arise out of or in connection with the Agreement.” Mohammad Harmoosh, a managing partner of Al-Harmoosh, gave a promissory note to the Foundation to guarantee payment of the loan. When Harmoosh refused to pay, the Foundation sued for breach of contract in the District of Maryland. Harmoosh successfully moved to dismiss on the grounds that the dispute was arbitrable, but he did not move to compel arbitration.
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