Thursday, November 02, 2006

Vivendi v. Deutsche Telekom in Seattle?

A recent New York Times article reports that Vivendi, the French media and telecommunications company, has filed a lawsuit in U.S. District Court in Seattle against Deutsche Telekom, a German communications company. The dispute has been ongoing for years, with prior involvement by various European courts and arbitrators. The complaint in the latest case alleges that Deutsche Telekom violated the U.S. Racketeer Influenced and Corrupt Organizations Act (RICO) by conspiring with a Polish investor to defraud Vivendi of its stake in Polska Telefonia Cyfrowa, a leading wireless operator in Poland. The French company alleges that American phone networks were used to send e-mails, which furthered Deutsche Telekom's plan to defraud Vivendi.

While the treble damages available under the RICO Act may be attractive, experts predict that it's unlikely Vivendi will ultimately see the $7.5 billion in alleged damages. As the Times article states, "[t]
rying a case in the United States could also embroil Vivendi in years of additional legal wrangling with little guarantee that a federal judge will finally hear the case." But this is a risk that Vivendi is willing to take.

Seems a bit tenuous to me. Not only are there obvious jurisdictional questions, but has RICO been utilized successfully in many commercial claims, let alone international commercial claims?

1 comments:

Anonymous said...

Hi Erin,

Is there any way that I can contact you, the reason being that I wish to pursue my masters in international dispute resolution I had certain queries, I was hoping if you could please answer the same for me. I am from India and will be applying to the colleges in US. So I am kind of running out of time. My email id is..gitikaagg@gmail.com