By Chelsey Dulaney
Tiffany & Co. said Wednesday that a Dutch court has ruled in
its favor and set aside an arbitration award the jeweler was
ordered to pay in 2013 related to its failed partnership with Swiss
watchmaker Swatch Group AG.
Tiffany was ordered in December 2013 to pay Swatch Group the
equivalent of $449.5 million in damages related to the failed
partnership. The two companies formed an alliance in 2007 to spur
the development, production and global distribution of Tiffany
brand watches. Despite being hailed by both companies as a historic
agreement, the alliance never really took off, ending in 2011.
Swatch took the matter to arbitration in the Netherlands, citing
breach of contract and alleging that Tiffany moved too slowly to
launch and promote the products. Tiffany filed a counterclaim,
blaming Swatch for not getting the watches onto the shelves of
other retailers.
Tiffany was ultimately ordered to pay roughly 402 million Swiss
francs and two-thirds of the cost of arbitration, among other
expenses.
Last March, Tiffany petitioned the court over the arbitration
award, which Dutch law allows to be set aside under certain
circumstances. A hearing was held in January, and a three-judge
panel issued its decision in favor of Tiffany on Wednesday.
Tiffany said Swatch can appeal the decision, in which case
Tiffany expects the matter to not be resolved for another year and
a half.
A Swatch representative couldn't immediately be reached for
comment.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
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