Troutman Sanders and Danish firm Plesner recently won a $6.4 million arbitration award representing the China-based Trayton Group against Georg Jensen A/S Denmark, a luxury brand, for the premature termination of their franchise agreement.

Georg Jensen signed a Master Franchise Agreement with GJ Investment, a Trayton franchise vehicle in September 2009, granting it exclusive franchise rights to Georg Jensen’s luxury and life style products in parts of China for 10 years. However, Georg Jensen terminated the contract in May 2012 and in December that year prematurely, resulting in a breach claim filed by GJ Investment against Georg Jensen in the Danish Institute of Arbitration.

Troutman Sanders Shanghai managing partner Edward Epstein represented the Trayton Group and acted as co-counsel with Danish counsel Frants Dalgaard-Knudsen of Plesner in the preparation of the arbitration case. Kromann Reumert represented Georg Jensen in the case.

The Arbitration Tribunal eventually ordered Georg Jensen to pay $5,350,000 as investment losses to GJ Investment. The Tribunal also rejected Georg Jensen’s claim for damages.