Northrop Corp. v. Triad Financial Establishment

MEMORANDUM OPINION

These are consolidated actions to, respectively, vacate and confirm an arbitration award against Northrop Corporation (“Northrop”) and in favor of Triad Financial Establishment and Triad International Marketing, S.A. (collectively “Triad”). Arbitration was initiated by Triad in 1979. After lengthy proceedings involving Triad’s claims to approximately $153 million in commission payments, the arbitration tribunal (the “tribunal”) made an award to Triad in the amount of $31,477,378.

BACKGROUND

The Marketing Agreement

On October 4, 1970, in an effort to facilitate the sale by Northrop of fighter aircraft and related equipment to the Kingdom of Saudi Arabia, Northrop and Triad executed a Marketing Agreement (the “Agreement”). The Agreement designated Triad as Northrop’s sole representative for the sale of certain specified products and services in Saudi Arabia. Triad was to be paid a commission on consummated sales at a rate varying according to the type of sale and with subsequent agreements between the parties. Direct sales by Northrop to Saudi Arabia were to be compensated at a fixed percentage of the contract price.

The Agreement also contemplated “indirect”…