Last week, a Dutch court backed a 2013 ruling ordering Tiffany & Co. to pay Swatch Group $450 million. According to Tiffany, the payment was a result of damages suffered from a failed joint watch venture.
In December 2007, the two companies partnered to produce and market watched under the Tiffany brand. However, the deal ended in a legal battle, with Swatch suing Tiffany in December 2011 for breach of contract. Tiffany then countersued, with Swatch ultimately winning the arbitration in December 2013.
In 2015, Tiffany successfully appealed the decision. As a result of this, the $450 million penalty, which had already been paid, was set aside. Swatch then contested the judgement, and the appellate court ruled in the Swiss company’s favor on April 25. Tiffany is now required to reimburse Swatch its legal costs of about $6,900.
According to Tiffany, the company can to further appeal to the Supreme Court of the Netherlands. If this happens, the annulment would be resolved during the fiscal year ending January 31, 2019 at the earliest, which could prompt further legal action between the two companies.
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