Lawyers, other representatives, expert(s), tribunal’s secretary

Final Award

[1].
I, THE UNDERSIGNED ARBITRATOR, Hon. Harriet Derman, P.J. Ch. (Ret.), having been designated in accordance with the arbitration agreement entered into between the above-named parties and dated September 23, 2016, and having been duly sworn, and having duly heard the proofs and allegations, do hereby issue this FINAL AWARD as follows:

PROCEDURAL BACKGROUND AND SERVICE

[2].
On November 3, 2017, Claimant KDDI Global, LLC ("KDDI", "KGL" or "Claimant") commenced this arbitration proceeding against Respondent Pllatel Communications, LLC ("Pllatel" or Respondent"). Notices regarding the Arbitration were sent to Respondent’s agent for service of process, Jose Rodriguez registered with the Florida Division of Corporations, along with the address listed in the Contract for legal notices, as well as two other addresses discovered associated with Respondent’s principal, Journey Garcia, and another address associated with Respondent’s other principal Rodney Martinez. Attempts to contact Respondent via telephone and email also were unsuccessful. Respondent has failed to timely respond to the arbitration demand or to participate in any way in this arbitration proceeding including the hearing on March 26, 2018. The Arbitrator finds the Respondent has been properly served.
[3].
An evidentiary hearing in this matter commenced on March 26, 2018. Prior to commencement of the hearing, the arbitrator ordered that the hearing proceed. The hearing lasted one morning. On March 26, 2018, the hearing closed for purposes of issuing this Final Award.

THE CLAIMS

[4].
Claimant alleges that Respondent breached the KDDI Global Reciprocal Carrier Services Agreement contract (the "contract") by failing to make timely payments on invoices issued pursuant to the contract for telecommunications services and facilities provided by Claimant to Respondent. Claimant seeks compensatory damages in an amount not less than $5,232,102.42, plus all applicable interest and the arbitration costs.

FINDINGS ON THE CLAIMS

Breach of Contract

[5].
Under the terms of the contract, Claimant and Respondent were to provide telecommunications services and facilities to one another. Claimant and Respondent were further required to provide each other with semi-monthly invoices for services provided under the contract. The invoices were to be paid within fifteen days of the postmark date of the invoice. All payments and credits owing by Claimant to Respondent have been made and provided in a timely manner. In or around May 16, 2017, Respondent started falling behind the payment schedules set forth in the contract. A sum of not less than $5,232,102.42 of the contract obligations remains unpaid by Respondent (the "Outstanding Debt").
[6].
In response to Respondent’s outstanding balance, Claimant proposed a payment plan in order for Respondent to bring the Outstanding Debt current. The principal representative of Respondent, Journey Garcia, confirmed in an email, dated July 24, 2017, Respondent’s approval of a payment plan thereby acknowledging the Outstanding Debt. Respondent never made payments pursuant to the payment plan.
[7].
On October 6, 2017, Claimant’s counsel sent a letter to Respondent and its principals to negotiate a resolution of this dispute concerning the Outstanding Debt. Respondent never responded. On October 24, 2017, Claimant’s counsel sent a follow-up letter to try once again to negotiate a resolution of the Outstanding Debt. Respondent once again failed to respond.
[8].
The evidence established, and the Arbitrator FINDS by preponderance of the evidence that Respondent established the existence of a contract, the Claimant’s performance pursuant to the contract, the Respondent’s breach of its contractual obligations, and damages resulting from the breach. See 143 Bergen Street, LLC v. Ruderman, 42 N.Y.S. 3d 252, 254 (N.Y. App. Div. 2016).
[9].
As to the cost of Arbitration, including the fees and expenses of the Arbitrator, Section 13.3 of the Contract provides that they should be shared equally by the parties unless the Arbitration Award provides otherwise. Each party shall therefore pay its own cost of Arbitration, including the fees and expenses of the Arbitrator.
[10].
The Arbitrator FINDS that by reason thereof Claimant is entitled to an award of damages, including arbitration costs, plus applicable interest.

AWARD

[11].
For the reasons stated above, I award as follows:

Claimant shall recover from Respondent compensatory damages in the amount of $5,232,102.42 plus all applicable interest in the amount of $793,539.00 in accordance with Section 5.5 of the Contract.

The administrative fees and expenses of the AAA/ICDR totaling $18,975.00 are to be borne equally. The compensation and expenses of Arbitrators totaling $5,100.00 are to be borne equally. Therefore, Pllatel Communication, LLC has to pay KDDI Global, LLC, an additional amount of $12,037.50.

To summarize, Respondent is awarded $5,232,102.42 for breach of contract, $793,539.00 in interest and $12,037.50 for reimbursement of Administrative fees of the AAA/ICDR and compensation of the arbitrator, for a grand total of $6,037,678.92.

This FINAL AWARD is the full determination of all claims submitted to this Arbitration. All claims not expressly granted herein are hereby denied.

[12].
I hereby certify that, for the purposes of Article I of the New York Convention of 1958, on the Recognition and Enforcement of Foreign Arbitral Awards, this Final Award was made in Newark, New Jersey.
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