The arbitration dispute between Triangulo Flooring and Panels (Curitiba, Brazil) and BR-111 Imports & Exports Inc. (Medley, Fla.) that began in June 2010 has formally ended, according to court documents.
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The arbitration dispute between Triangulo Flooring and Panels (Curitiba, Brazil) and BR-111 Imports & Exports Inc. (Medley, Fla.) that began in June 2010 has formally ended, according to court documents.
On Aug. 24, an appellate court upheld a district court's decision ordering BR-111 to pay a $1.6 million arbitration award to Triangulo for unpaid invoices, legal costs and interest. On Wednesday, U.S. District Judge William M. Hoeveler closed the civil case.
"The courts have ruled that the arbitration award is 100 percent correct and enforceable," said Triangulo's legal counsel Quinn Smith of Miami-based Smith International Legal Consultants. Smith said he is unsure whether BR-111 will follow through on the arbitration award payment.
"… We find all of this absolutely nonsense and totally unfair," said BR-111 CEO Daniel Pagano.
During the district court's civil proceedings, Triangulo's insurer, SBCE S/A, intervened in the case, citing a "subrogation right." The subrogation right resulted from a $900,000 payment SBCE made to Triangulo for BR-111's outstanding receivables.
"Triangulo and its insurer intend to pursue every remedy available to enforce the award and the judgment," Quinn added.
In June 2010, the two companies commenced arbitration to settle a dispute over unpaid invoices. An arbitration tribunal later awarded Triangulo about $1.6 million, and it also stipulated that Triangulo owed BR-111 $42,596 for other outstanding warranty claims and interest. After BR-111 did not pay, Triangulo took the matter to civil court in December 2010, petitioning the U.S. District Court to enforce the tribunal's award. In Jan. 2012, the district court confirmed the arbitration award; however, BR-111 appealed that decision in February.
In an odd turn, BR-111 in June sent letters to 13 former distributors demanding $1.6 million for warranty claims stemming from its legal dispute with Triangulo (in 2010, BR-111 changed its business model to go dealer-direct). According to court documents, BR-111 had paid roughly $880,077 to the former distributors in an effort to keep good relations with them; however, the arbitration tribunal later deemed the lion's share of those claims "unproven" for lacking cited defects and inspection reports.
In appellate proceedings, BR-111 contended it was denied the opportunity to respond during arbitration proceedings to what it perceived as new evidence and arguments brought by Triangulo in a post-hearing brief. In the end, the appellate court upheld the tribunal's award, saying in its final decision that "BR-111 was given a full opportunity to present its case during a full hearing and in the post-hearing submissions."
