Friday 15 October 2021

#Dubai Court Tells Nissan to Pay $354 Million to Gulf Partner - Bloomberg

Dubai Court Tells Nissan to Pay $354 Million to Gulf Partner - Bloomberg

Nissan Motor Co. was told by a court in the United Arab Emirates to pay 1.3 billion dirhams ($354 million) to a joint-venture partner that sued the Japanese automaker of breaching an agreement over the distribution of vehicles in the region.

Al Dahana FZCO, a Dubai-based company established by people with links to former Nissan Chairman Carlos Ghosn, accused Nissan in 2019 of reneging on its contractual obligations. That happened months after Ghosn was arrested in Tokyo on allegations of understating his compensation, although he has since fled Japan to escape trial and now resides in Lebanon.

Nissan said the partnership ended in 2019 after it fully complied with its contractual obligations, and that legal proceedings are ongoing in the emirate. “We are confident that Nissan has acted properly throughout and look forward to resolving the matter through the Dubai courts for the benefit of our employees, customers and stakeholders,” Azusa Momose, a spokeswoman for the Yokohama-based company, wrote in an emailed statement.

Nissan has been dealing with a plethora of legal issues since the arrests of the auto executive and Greg Kelly, a former Nissan director who was accused of helping Ghosn hide income. Nissan was also charged, and in turn the automaker has sued its former chairman in Japan. There are also legal proceedings in France and the Netherlands. Last month, Nissan agreed to settle a U.S. class action by investors who said they were misled about Ghosn’s compensation. Kelly’s trial is ongoing in Japan, with a verdict due in March.

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