The Netherlands Arbitration Institute ordered Tiffany & Co. to pay Swatch Group AG approximately 402 million Swiss Francs or about $449 million dollars in compensation over a contractual dispute, the companies announced Sunday. It also required Tiffany to cough up more than nine million dollars for the legal fees arising from the cost of arbitration for Swatch.
Shocked and Disappointed
According to Michael J. Kowalski, Tiffany chief executive, “We were shocked and extremely disappointed with the decision of the majority of the arbitral panel. We do not believe that the award will impact our ability to realize our existing business plans in the short or long term.” He also said that the company will review its legal options regarding the decision. The dispute began in 2011 when Swatch stopped its cooperation with Tiffany, because Swatch alleged that the jeweler was in breach of contract due to attempts to block a joint venture they had entered back in 2007.