Pillsbury has prevailed in an ICC-administered arbitration in which claimant ArcelorMittal, one of the largest vertically integrated steel manufacturers in the world, sought more than $200 million from Finnish client Metso Corporation, a Finnish industrial machinery company.
The dispute centered on allegations that a Metso-supplied component relied upon in ArcelorMittal’s billion-dollar mining complex expansion in Mont-Wright, Quebec, Canada, was not fit for the purpose intended. ArcelorMittal claimed the component—known as an autogenous grinding mill—was defective and resulting in the loss of many millions of tons of iron concentrate production at the plant.
On March 20, the Majority of the Arbitral Tribunal found that ArcelorMittal failed to prove that Metso’s equipment was unfit for its purpose and dismissed the damages claims against Metso. The Majority also determined that the Metso equipment was not defective. In addition to dismissing the claims against Metso, the Majority also awarded $4.7 million to Metso to cover fees and expenses relating to the arbitration. Proceedings to recognize and enforce the award are now underway in New York—the seat of the arbitration—and Montreal, where ArcelorMittal’s Canadian mining operations are headquartered.
The Pillsbury team representing Metso in the dispute was led by partners Michael Jaffe and Jack McKay and included counsel Clare Pincoski, associate John Chamberlain and Lori Ramsey who provided paralegal assistance. The Langlois firm in Montreal served as co-counsel focused on the intricacies of the Civil Code of Quebec, which was the governing law under the parties’ contract.