Kemper Corp. subsidiary Kemper Corporate Services Inc. has received a favorable ruling in a confidential arbitration proceeding against a software vendor.
In October 2015, Kemper Corporate Services filed a demand for arbitration with the American Arbitration Association. The demand claimed that the vendor had breached the terms of a master software license and services agreement and related agreements by failing, among other things, to timely produce and deliver certain software to Kemper. However, the vendor denied Kemper's claims and filed a counterclaim.
On Oct. 2, the arbitrator issued a partial final award in favor of Kemper, under which Kemper's claim that the vendor had breached the agreements was granted and the vendor's counterclaim and affirmative defenses were denied.
Additionally, the arbitrator awarded Kemper direct damages in the amount of $84.3 million and announced that Kemper is entitled to prejudgment interest in an amount to be calculated at a rate of 9%. Under the award, Kemper is also entitled to submit a petition seeking an award of certain costs and expenses of the arbitration.
The arbitrator's decision on the vendor's liability for breach and the damages for that breach is final, subject to challenge by the vendor on any grounds available under applicable law.
Kemper intends to pursue confirmation and enforcement of the partial final award in a court of competent jurisdiction and intends likewise to do so with respect to any final award by the arbitrator.