Case study

USA - Switzerland corporate raiding

Nationality of Parties: American and Swiss

Facts: This dispute concerned the Respondent's hiring of numerous members of the Claimant's Geneva, Switzerland, branch office, including the acting branch manager and the three largest producers of business in the office. The Claimant believed that the Respondent's actions constituted a mass hiring of a competitor's salesforce using improper means. The Claimant commenced arbitration proceedings against the Respondent alleging an illegal raid and seeking damages in excess of US $7.5 million. The case was governed by New York law.

Amount in Dispute: US $7.5 million

Route to Mediation: Arbitration in New York was administratively adjourned pending the outcome of this mediation.

Time Between Decision to Mediate and Final Outcome: Two months

Mediators' Pre-mediation Work: Ten hours of preparation

Length of Mediation: Two days

Cost per party (includes preparation): US $9,000

Conclusion/Post-mediation Work: The parties settled their dispute through the mediation process.

Comments from those involved:

The Claimant stated that the main benefits to their organisation of using the mediation process rather than litigation were ‘certainty of result, huge time savings, usually huge savings in fees, control [of result]’. Importantly, the Claimant also felt that the mediation had preserved the relationship between the parties, ‘Yes, we left on reasonably good terms.’