Johannesburg, 04 Dec 2006
Since last month's Supreme Court of Appeal (SCA) ruling against Telkom, in a long-running software contract dispute with the US-based company Telcordia, it has emerged Telkom missed the opportunity to walk away with an out-of-court settlement.
Lennard Cowan, Telcordia's attorney of record for all South African litigation matters, confirms settlement negotiations did take place prior to the SCA ruling.
However, he says the details concerning the amount Telcordia would have asked Telkom to pay, and the reasons talks collapsed, are strictly confidential.
Telkom's group executive for legal services, Anton Klopper, has been recently quoted as saying Telcordia offered to settle the matter in exchange for about $50 million (R360 million).
Finalised mid-2007
As the matter now heads for arbitration to determine the amount Telkom must pay, the South African telco has been quiet on the issue of whether it now rues the missed opportunity to settle the matter for a reasonable amount.
It is understood the arbitrator could - in a worst-case scenario for Telkom - award Telcordia R1.5 billion in damages. Cowan declines to comment on the amount Telcordia hopes to be awarded.
Of the arbitration, he says: "I would imagine it will be wrapped up by the middle of next year - both parties would obviously want it [to be resolved] as soon as possible."
Cowan has already asked the arbitrator to indicate dates for the beginning of the hearings, and says the parties must now co-ordinate schedules.
Related story:
Telkom loses Telcordia dispute
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