LOS ANGELES, April 14, 2008 (PRIME NEWSWIRE) -- A jury has awarded two companies controlled by a major Taiwan-based public company -- Pou Chen Group -- one of the largest verdicts in California this year, the company's lawyer said today.
The $46.7 million judgment on behalf of BHE Group, Inc. and GBM International, Inc. came Friday after a two-month trial and nine days of jury deliberations in Los Angeles Superior Court (Burbank). "We are very pleased with this result and appreciate the time and effort put in by the jury," said the lead lawyer for the plaintiffs, Skip Miller of Miller Barondess, LLP in Los Angeles.
The award was rendered against Ben Hsia and MTS Products, both of Los Angeles, who acted as a conduit to Wal-Mart, the nation's largest retailer. The plaintiffs entered into an agreement with the defendants to bring laptop computers, monitors and related electronics into the United States for sale to Wal-Mart.
The parent company, Pou Chen, is one of the world's largest corporations, headquartered in Taiwan with more than 400,000 employees and operations in Taiwan, China, Vietnam, Indonesia, Mexico and the United States. In addition to electronics goods, Pou Chen produces more than 30% of the world's athletic footwear.
The plaintiffs had not previously done business with Wal-Mart and entered into a venture with MTS/Hsia because of their extensive prior dealings as an approved Wal-Mart supplier. The venture sold more than $50 million of products to Wal-Mart before dissolving amid allegations of non-payment of funds and disputes about product quality.
In 2005, the plaintiffs filed suit, accusing the defendants of breach of contract, breach of the covenant of good faith and fair dealing and breach of fiduciary duty, among other things. Wal-Mart was not a party to the litigation, although several of its executives testified at trial.
More than 20 witnesses took the stand over the course of trial, including Pou Chen's legendary founder and chairman, C.J. Tsai. In addition, there was expert witness testimony with regard to the computers and electronics products and from financial experts, including two former FBI agents.
Plaintiffs' lawyer Miller remarked, "I give credit for this victory to our team and all the solid preparation and hard work by my colleagues at the law firm -- and, most of all, to our clients whose honesty and credibility carried the day. This is a good day for the good guys."
Miller, one of California's top trial lawyers, is known for his incisiveness and ability to connect with jurors. After the verdict was rendered, one juror remarked that it was Miller's simplified and understandable approach to complex issues that helped convince the jury.