$16.5 Million Arbitration Award

$16.5 Million Arbitration Award

May 11, 2015

VERDICTS AND SETTLEMENTS FORM

Submitted by: E. Powell Miller and Kevin F. O’Shea
The Miller Law Firm, P.C. Attorneys for Plaintiff, Peter Karmanos, Jr.

Name of Case(s): Peter Karmanos, Jr. v. Compuware Corporation

Type of Action: Breach of contract/wrongful termination

Court/County/Case No(s): Wayne County Circuit Court, Case No. 2013-014776-CK

Name of Judge(s): Hon. Daniel P. Ryan

Jury Demand? Yes

Damages Awarded/Amount of Settlement: $16.5 million

Date of Award/Settlement: May 11, 2015

Attorneys for Plaintiff: E. Powell Miller, Kevin F. O’Shea, Devon P. Allard, and Mariell McLatcher of The Miller Law Firm, P.C. (David Goodrich, Intern)

Attorneys for Defendant: Samuel C. Damren and Andrew J. Kolozsvary of Dykema Gossett PLLC

Other Information:

On May 11, 2015, Wayne County Circuit Court Judge Daniel P. Ryan confirmed an arbitration award by Gene J. Esshaki of Abbott Nicholson ordering Compuware Corporation to pay Peter Karmanos, Jr. $16.5 million. Mr. Karmanos, the co-founder and longtime CEO and Chairman of Compuware, retired in March 2013 and became a consultant to the Company. Compuware terminated Mr. Karmanos in September 2013 and cancelled millions of dollars in vested stock options, purportedly because he made critical comments about Compuware’s management. Mr. Karmanos sued for breach of contract, conversion, and unjust enrichment. Compuware vigorously defended the case, contending that it had the right to terminate Mr. Karmanos and cancel his vested stock options. Following a two-week hearing, Arbitrator Esshaki awarded Mr. Karmanos $16.5 million. Compuware moved to vacate the award, but Judge Ryan denied the motion, confirmed the award, and entered a $16.5 million judgment against Compuware. The Judge ruled that the parties had agreed in writing that the Arbitrator would issue an award without findings of fact and law and that “in Michigan, it is well-settled law that arbitration is intended as a substitute, not a warmup for litigation.”

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