EMH Wins Military Arbitration

When BAE Systems Tactical Vehicle Systems, L.P., a leading global defense, security and aerospace company, became involved in a multimillion-dollar breach of contract case concerning emerging telediagnostic technology for military vehicles, it asked EMH to handle the case. BAE Systems had received a government contract to produce ten prototype embedded diagnostic systems for application to medium-tactical vehicles. A disgruntled unsuccessful subcontractor sued BAE Systems for refusing to allow it to work on the project. A three-member arbitration panel issued a resounding defense victory for BAE Systems. After a weeklong American Arbitration Association hearing, the arbitration panel issued a lengthy written opinion completely vindicating BAE Systems. The panel found that “[t]he arbitration was groundless and frivolous as to BAE Systems. There was no evidence that BAE Systems committed any wrong, and [the claimant] failed even to articulate a viable legal cause of action.” The panel also held that BAE Systems was entitled to recover all its attorney’s fees and expenses associated with the arbitration.