Saint-Gobain Seeks to Identify Xinyis Assets, Execute $24
Million Judgment; Xinyi Objects
July 13, 2010
Saint-Gobain Autover USA Inc. and the related Saint-Gobain companies
have filed a motion seeking an expedited discovery, in hopes of
identifying Xinyis assets so that it might obtain the approximately
$24 million it is owed as a result of the April judgment made against
it. In the recently filed motion, Saint-Gobain Autover speaks of
several alleged delays in the defendants attempts to pay the
debt owed, since the U.S. District Court for the Northern District
of Ohio ruled against it last November and determined the final
judgment this April in the ongoing patent infringement suit. (CLICK
HERE for related story.)
Xinyi had requested (and was granted) an extension in April to
secure financing for the debt owed to Saint-Gobain. That extension
went until May 31. (CLICK
HERE for related story.) Then, as the May 31 deadline approached,
the company filed a motion for the court to vacate or adjust the
damages against it, or to provide a new trial. (CLICK
HERE for related story.) Around May 31, Saint-Gobain says Xinyi
also sought an extension so it could secure a Letter of Credit
(LOC)an extension that went until June 15.
On the day the agreed extension lapsed, June 15, Xinyi informed
Saint-Gobain that the Bank of China was apparently still reviewing
the LOC, writes the company. Saint-Gobain was told that
counsel would speak with Xinyi that evening due to the time difference.
When Saint-Gobain asked again the following morning, they were told
no conversation took place, this time due to a Chinese holiday.
As of June 22, Saint-Gobain officials say they were told that Xinyi
and the Bank of China still were negotiating terms on the LOC.
Now that extended deadline has come and passed leaving Saint-Gobain
with no security for its judgment, writes the company. Because
we have now reached a point where Xinyis repeated assurances
ring hollow, Saint-Gobain is compelled to move this Court for an
order allowing expedited discovery in aid of execution on the Courts
In an effort to execute the judgment, Saint-Gobain says it has
served focused discovery requests to identify Xinyis
assets, but says it is subject to the ephemeral nature
of [its] U.S. assets. Among these, it points to the shipments
of windshields and other glass parts throughout the United States
by Xinyi; and the money owed to Xinyi by its customers all over
the United States.
Because of Xinyis reluctance to provide financial data
on customer sales during this litigation, Saint-Gobain does not
have information on the amounts or location of Xinyis accounts
receivable, writes the company. Based on this, the company
is seeking information on property Xinyi owns in the United States,
accounts receivable owed by U.S. companies to Xinyi and any of its
bank accounts in the United States.
Xinyi has objected to the motion, saying that it has expended
considerable time and effort to obtain the requisite security to
stay execution of the judgment, and details the steps it has
taken to secure a bond and/or a letter of credit.
Likewise, Xinyi says that Saint-Gobain has patently misrepresented
the scope of its proposed expedited discovery, and calls its
discovery requests expansive and burdensome.
Without good cause and without discovery appropriately narrow
and tailored, Saint-Gobain has no basis upon which to deviate from
the normal discovery procedures, writes Xinyi.
However, Saint-Gobain has replied to Xinyis objection, saying,
Xinyi simply cannot offer any legitimate reason to explain
why judgment was entered over 3.5 months ago, yet there is still
no letter of credit or any indication of when, or if, one will be
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