Ron Pressures to settle... Why J3 hasn't settled
posted on
Jun 26, 2007 04:21AM
Ron;
kind of long but does this make sense?
I would assume that the reason J3 ( or should I write NA3 ( as in Northern Asia 3 to not offend anyone) hasn't settled is because they do not control the case relative to ARM asics.
One of my corporate vehiceles was recently smashed into by an unnisured 18 year old on a "borrowed" motorcycle - no papers- but hey it was in Washington Hights in upper manhattan so what should I have expected.
My insureance company wanted to pay a token to settle but since the kid had no real expenses - except for a bike he couldn't prove he owned- and his lawyer wasn't that much older and probaly was in training by some small abogoda firm in upper manhattan they decided to sue.
Needless to say that my i was concerned about opportunity costs and so, after the 2nd day in which I needed to cancel meetings for scheduled depositions I offered to my lawyers some additional money,(seems that depositions aren't things that happen with strict scheduling constraints and noone gets "punished"for not showing or last minute cancellations) out of my corporate account to settle.
I run a small consulting company and I either consult or are meeting with accounts looking to engage to consult, and any day I can not schedule client meetings is a day someone else can steal 50+K in potential business and at a ,imimum I will lose a day's billings since I can't even schedule meetings with current clients.
Well no such luck. My legal easgles said that my money wasn't good in this club and that they would handle it. When I inquired why they wouldn't use my money they said, That the case is a throw away and that the injuries weren't worth anything and that if the kid was in a car the NY statutes wouldn't even allow it into court but its a bike and therefore they need to work it through, However, they did not want to pay one more cent than the token amount since that would be a bad precident ( from a business perspective) since other plantiffs would try to get more not knowing that I paid the money, furthermore if the plantiff knew that I was the one paying then he would think that he could get even more and then not agree to settle and go to trial, And if it goes to trial then we all lose. And after some more conversation they politely reminded me that while they were "also" defending me and my co. that was coincendental since they were in fact insuring my Insurance Co. and I was merely a witness and shouldn't worry about anythng since regardless of what would be paid out it would never cost me a dime out of pocket.
Well apologoies for making a short point long but if ARM has indemnified J3 then J3 jas no direct issue vis a vis the ARM products, - UNLESS the J3 willingly used ARM products after ARM told them that there are infingement issues- But assuming that ARM told/implied to the J3 that the chips do not infringe and that should they be found to infringe that ARM would indemnify, then J3 has would not have any say in the matter of settlement.
That being said TPL/PTSC may still sue j3 since you always stick your hands into the deepest pockets. And the J3 in so far as they are being sued for use of any ARM products and are indemnified by ARM have to simply come to the depositions and when requested, answer questions and then go away quietly with the knowledge that although these preceedings are interruptive to J3, J3 will not have (at least with regard to ARM ASICs) any direct out of pocket expenses.
Ergo TPL sues ricj boys J3; J3 enjoins ARM as tehy are contractually obligated to indemnify.
ARM then should also have a liability insurance and I'm sure that they in turn are being guided by their insurers lawyers, and the nisurance company I can only assume lays off much of the potential liability by reinsuring with a Re-insurer who would also have a say in any settlment.
So my point is that the J3 have absolutley no say in any settlement discussions with ARM, and ARM needs to protect not only against J3 use of ARM porducts but also against any use of any ARM products by any company in teh world.