We recently represented an importer in a dispute concerning the non-delivery of a bed mattress that had been ordered from the United States. Through skilled negotiation and evidence presentation, we were able to reach a favorable resolution, resulting in a 60% reduction of the claimed amount.
(Note: The following account is a dramatization of the actual case, and certain details have been altered for illustrative purposes.)
Background:
X, a bed seller based in the U.S., founded Y, a bed importing entity in Korea. Mr. Z, who resides in the U.S., serves as an executive officer of X and concurrently holds the position of representative director of Y.
Plaintiff A, a bed retailer in Korea, placed an order for a renowned American bed mattress with X, utilizing Y as the intermediary. However, the mattress was never delivered despite A having made the payment.
The Dispute:
A initiated a lawsuit against Y for the non-receipt of the mattress after settling the invoice. Y defended by attributing the failure to deliver to supply chain disruptions. A countered this argument, alleging that X and Y were essentially the same entity, both being under the control of Mr. Z.
Our Involvement:
During litigation, our team at K&P shed light on the corporate intricacies of the U.S. bed mattress seller, X. We unveiled the shareholding structure, detailed the establishment process, and highlighted the leadership of X. Our investigative efforts determined that X faced challenges in obtaining mattresses from manufacturers due to disruptions caused by the coronavirus pandemic.
Resolution:
Taking all the presented evidence into account, the tribunal proposed a settlement amounting to approximately 40% of what A initially paid to Y. This recommendation was amicably accepted by both parties, bringing the case to a satisfactory close.
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