Motorola, Nokia Still Stalking Uzans for $3.4 Billion
By Andrew Longstreth
October 13, 2009
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When we read this story from Bloomberg about how Nokia and Motorola are still trying to collect on a multibillion-dollar judgment against the infamous Uzan family of Turkey, it reminded us of the menacing paper boy in the 1985 classic Better Off Dead, who goes to impossible lengths to get his "two dollars."Nokia and Motorola, of course, are seeking a bit more from the Uzans: $3.4 billion, to be exact. The pursuit started about nine years ago, after the Uzans had failed to pay $2.7 billion they owed to Nokia and Motorola. The money was supposed to go toward expanding the Uzan's telecom Teslim Mobil.
Motorola, represented by Steptoe & Johnson, and Nokia, represented by Holland & Knight, sued the Uzans in New York federal court in 2002. After the Uzans were a no-show at trial, Manhattan federal district court judge Jed Rakoff entered a judgment of $3.1 billion for Motorola and $1.7 billion for Nokia.
Bloomberg reports that the two phone companies have since seized various assets around the world belonging to the Uzans, including two airplanes and a yacht worth $125 million. They've also received $1.25 billion from Turkey in a settlement over Teslim's assets.
That still leaves the companies $3.4 billion short. Steve Davidson of Steptoe, who represents Motorola, thinks he knows a way to get it. In a declaration filed last month, Davidson sought an order to enforce the judgments against Cyprus-based Libanaco Holdings, which Davidson and the plaintiffs claim is an alter ego of the Uzans and which has a $10 billion claim against Turkey in a World Bank arbitration proceeding.
Judge Rakoff has scheduled a hearing on the application to enforce the judgment against Libanaco for November 19. Neither Stuart Newberger of Crowell & Moring, who represents Libanaco, nor Stan Mortenson of Baker Botts, an attorney for the Uzans, returned Bloomberg's calls for comment.
