In the NewsParis court upholds Taiwan’s victory in Lafayette case
Defense contractor Thales SA and the French state have lost their appeal against a 2010 decision ordering them to pay 630 million euros (US$913 million) in compensation to Taiwan over the 1991 Lafayette-class frigate deal, according to the ROC Ministry of National Defense June 10. The Paris Court of Appeals confirmed the judgment handed down by the International Chamber of Commerce’s International Court of Arbitration last May, which found Thales had violated Article 18 of the six-ship US$2.5 billion Lafayette contract prohibiting payments of commissions to intermediaries. The MND first took the case to the ICC in 2001 for resolution. “In accordance with the latest decision, Thales must pay arbitration and litigation expenses,” a MND official said. “We will continue resorting to legal procedures and require the firm to fulfill its obligation.” Following the ruling June 9, Paris-headquartered Thales issued a statement confirming provisions had been made to pay its 27.46 percent share of the penalty, around 172 million euros, with the French government covering the remainder. “The decision of the Court of Appeals is enforceable; Thales will pay the amount due as soon as possible,” the statement read. French Prime Minister Francois Fillon said in a statement that as the government guaranteed the contract, it is obliged to cover 72.54 percent of damages. The French government is also willing to assist Taiwan in recovering commissions paid to intermediaries, the statement added. According to the French defense ministry, the court’s ruling has brought the two-decade-old dispute to a close. Write to Elaine Hou at elainehou@mail.gio.gov.tw |