Dell Ordered to Pay US$3.6 Million for Breach of Contract

According to Dominican media reports, a Santo Domingo court sentenced the local Dell, Inc. subsidiary to pay RD$116.5 million (approximately US$3.6 million) in indemnification to Dominican information technology firm Xolutiva, S.A. The Dominican company sued Dell for RD$300 million for violating its rights as the Dell’s local representative. The Civil and Commercial Chamber ruled against Dell for violating Law 173 on International Representations, holding that Xolutiva represented Dell in the country since 1997, but Dell unilaterally decided not to renew the contract without due compensation. The court ordered Dell to close its operations in the Dominican Republic.