DCC fi­nally ends €21m Tai­wan le­gal case

Irish Independent - Business Week - - NEWS - John Mul­li­gan

AFTER a decade, di­ver­si­fied Ir­ish dis­tri­bu­tion gi­ant DCC has fi­nally se­cured the fi­nal pay­ment due after it won a long-run­ning le­gal bat­tle against a Tai­wanese firm.

DCC has re­ceived £4.3m (€5m) in le­gal costs due as a re­sult of its suc­cess­ful bat­tle against Pih­siang Ma­chin­ery Man­u­fac­tur­ing. DCC boss Tommy Breen con­firmed it’s the fi­nal pay­ment due from the case.

In 2002, Pih­siang de­clined to re­new a con­tract with a unit of DCC to dis­trib­ute its ‘Sho­prider’ mo­bil­ity scooter in Europe.

DCC then sued for breach of con­tract, and was awarded dam­ages of £10.2m against the Tai­wanese firm, as well as in­terim costs of £2m and in­ter­est of £1.8m. That brought the to­tal dam­ages and costs awarded to £14m (€21m at the time).

In 2005, A Tai­wanese court up­held the Lon­don rul­ing. But no money was ini­tially paid, and by 2010 the amount owed to DCC by Pih­siang had risen to £22m.

But DCC then be­gan to se­cure the dam­ages and costs it was due, with the money be­ing drip fed to it over the next few years.

DCC’s an­nual re­sults pub­lished this week note that it recorded a net gain of £4.3m, pri­mar­ily due to a fi­nal cash re­cov­ery in re­spect of the Pih­siang le­gal claim.

DCC re­ported record re­sults this week, with its op­er­at­ing profit ris­ing just un­der 36pc to £300.5m (€383m) in its fi­nan­cial year to the end of March.

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