Datalex obtains € 823,000 from Lufthansa in arbitration award
Datalex said on Wednesday that Lufthansa had been ordered by an international arbitration tribunal to pay the Irish travel retail software provider € 823,000, plus interest and certain charges, for services provided to the German airline group before the ‘implosion of their working relationship two years ago. .
The award is a minor victory for Datalex as the two sides remain locked in a multi-million euro battle, in lawsuits and counter-suit cases in the Frankfurt regional court.
Shares of the company rose 1.5% to 69% at the start of trading in Dublin.
Lufthansa decided in September 2019 to terminate a major contract for Datalex to overhaul its digital commerce offering after the project, initially agreed in 2016, exceeded budget and missed key deadlines.
Datalex initiated legal proceedings against Lufthansa in the Frankfurt Regional Court shortly after the contract was terminated.
The Irish carrier’s annual report for 2020 showed it had billed balances owed by the German carrier and its Swiss International Airlines unit of $ 2.9 million (€ 2.5 million). Datalex had also notified Lufthansa of its intention to claim more money in damages.
Datalex separately requested in March 2020 to issue a notice of dispute and invoke a contractual arbitration clause to collect amounts owed to it by Swiss International Airlines from Lufthansa. The International Arbitral Tribunal of the International Chamber of Commerce has now ruled that Lufthansa should play Datalex € 823,000, plus interest, and bear its own legal costs as well as reimburse the Irish company for part of its costs associated with the case.
“Datalex will pursue its other claims against Lufthansa,” the company said, referring to the case in the Frankfurt court, covering the amounts Datalex claims to belong to it, as well as general commercial damages.
Lufthansa counterattacked Datalex for at least € 9.7million in June, with the development coming just before the Irish company held an extraordinary general meeting to validate the terms of a 25million share sale. euros to consolidate the company’s finances.
Lufthansa claims damages and requests a declaratory judgment for any additional damages.
Datalex’s improper accounting of contract revenue sparked a financial scandal within the Dublin-listed group in January 2019, precipitating an overhaul of the company’s board and management, cost reduction and the need to emergency loans from its major shareholder, Dermot Desmond, to keep the business afloat.