Gemalto, a leading international digital security company based in Amsterdam, reportedly won a $45 million arbitration award against Merchant Customer Exchange (MCE), a consortium of United States retailers that includes Wal-Mart, Target, and Kohl’s. Gemalto claimed that MCE, for its own convenience, terminated a contract to develop a mobile payment platform. The panel of three arbitrators awarded Gemalto contract damages plus more than $3 million in attorney’s fees.
MCE is seeking to have the award vacated on the ground that the arbitrators exceeded their authority by awarding Gemalto attorney’s fees. MCE argues that Texas law provides no basis for the arbitrators to award legal fees and that the parties did not include an attorney’s fee provision in their contract.