DCC finally ends €21m Taiwan legal case
After a decade, diversified Irish distribution giant DCC has finally secured the final payment due after it won a long-running legal battle against a Taiwanese firm.
DCC has received £4.3m (€5m) in legal costs due as a result of its successful battle against Pihsiang Machinery Manufacturing. DCC boss Tommy Breen confirmed it's the final payment due from the case.
In 2002, Pihsiang declined to renew a contract with a unit of DCC to distribute its 'Shoprider' mobility scooter in Europe.
DCC then sued for breach of contract, and was awarded damages of £10.2m against the Taiwanese firm, as well as interim costs of £2m and interest of £1.8m. That brought the total damages and costs awarded to £14m (€21m at the time).
In 2005, A Taiwanese court upheld the London ruling. But no money was initially paid, and by 2010 the amount owed to DCC by Pihsiang had risen to £22m.
But DCC then began to secure the damages and costs it was due, with the money being drip fed to it over the next few years.
DCC's annual results published this week note that it recorded a net gain of £4.3m,primarily due to a final cash recovery in respect of the Pihsiang legal claim.
DCC reported record results this week, with its operating profit rising just under 36pc to £300.5m (€383m) in its financial year to the end of March.