The Law Office of Lynnette Ariathurai A Professional Corporation

Global Xpress contract dispute is being battled out in court

The typical California resident and/or business owner would likely consider $65 million a substantial sum. This is the amount being fought over in a highly contentious contract dispute between two major satellite and telecommunication companies, one based in the United States, and the other in the United Kingdom. RigNet and Inmarsat are battling it out in court regarding a five-year agreement the two companies signed. RigNet supplies telecommunication services to gas and oil businesses and says it terminated its contract with Inmarsat pursuant to all obligations contained therein.

Inmarsat apparently disagrees with that assessment. The company says the 2014 agreement holds RigNet fully accountable for an agreed-upon $65 million purchase of Global Xpress, a high speed broadband network. The parties have been attempting to resolve the contract dispute through contractually stipulated arbitration.

An initial complaint was filed by Inmarsat against RigNet in 2016. Inmarsat says the complaint was based on RigNet's failure to fulfill its take or pay obligations regarding Global Xpress services. The company asserts that the agreement stipulations render RigNet responsible for immediate payment in full. A spokesperson said RigNet is contesting Inmarsat's position.

Reportedly, RigNet has purchased several different companies within the past year. The company apparently did not respond to recent media inquiries regarding its current dispute with Inmarsat. When millions of dollars are at stake, most California business owners align themselves with experienced, aggressive commercial law attorneys who are fully prepared to protect their interests in court. This type of representation often makes or breaks a particular outcome.

 

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