10th ICC International Commercial Mediation Competition 2015

Team Code: National Law Institute University

10TH ICC INTERNATIONAL COMMERCIAL MEDIATION COMPETITION 2015

In the matter of
A Burning Problem

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Mediation Plan On Behalf Of Perrin Aircraft Corporation

10th ICC International Commercial Mediation Competition 2015

MEDIATION PLAN ON BEHALF OF PERRIN AIRCRAFT CORPORATION

STRONG POINTS

There has been no binding contract between Perrin Aircraft Corporation (Perrin) and
Whittle Engines (Whittle) for the development of the FW2X engine for use in the 8S
jet aeroplane, despite oral discussions regarding the same. This is especially beneficial
to Perrin who is looking to enter into an agreement with Bollin & Lamb for the supply of

engines to meet the AmVac order.

There is no obligation or liability on the part of Perrin to mandatorily use the FW2X
engine on either aircraft, as no guarantee has been made to Whittle that the FW2X
engine would be installed in all the 8S aircraft that would be sold. Whittles assumption
that the FW2X engine would be used on the 6ER aircraft is based on oral agreements

and hence is not binding on either party.

The fact that the 8S airplane was able to make a safe landing even after one of its
engines flamed out is testament to the high quality of engineering and manufacturing

work done by Perrin.

The fact that it might be possible to get a court order, perhaps initially ex-parte, for
specific performance against Whittle Mendorra Ltd, to oblige them to supply the spare
parts means that maintenance of the already sold aircraft can be managed in the near
future.

WEAK POINTS

Whittle has supplied engines to 80% of Perrins previously manufactured jets. Perrin
also provides engine maintenance to all customers who have installed the FW1X
engine. The spare parts used are supplied and manufactured by Whittle, and thus
Perrin is reliant on Whittle in this aspect. As a result, they cannot afford to antagonise
Whittle too much.
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The size of the AmVac order would cause Perrins manufacturing capabilities to be
stretched very thinly. The two years spent in fulfilling the order would probably mean
the loss of share in the consumer market, as well as antagonising Whittle, whose

engines would effectively not be used until completion of the AmVac order.
Although the air safety investigation is likely to clear both parties of any liability, it may
not be released before the Beacon Hill Air Show. Delay in clearing Perrin of any liability
will definitely result in reduced sales, as was already seen at the Los Santos Air Show.

INTERESTS AND NEEDS

Perrin would be looking to ensure that the supply and maintenance arrangement for
the FW1X engines used in the 4S and 6S aircraft is unaffected, as these are the best

possible engines for those planes.

Any agreement reached cannot have an exclusivity clause for use of Whittle engines
on the aircraft, as the final choice of engines lies with the customer. Perrin is especially

keen on giving customers the freedom of choice.

Perrin would not be averse to paying some amount of compensation to Whittle if that
would guarantee that the contract with AmVac would go through unaffected.

BEST ALTERNATIVE TO NEGOTIATED AGREEMENT (BATNA)

In case the parties fail to reach a suitable agreement at the negotiation settlement, the best
alternative for Perrin would be to push ahead with securing the AmVac contract, while
pursuing the lawsuit for damages that is already proceeding. In the event that it is determined
that Whittle are not liable in any manner, there is no binding obligation between the parties for
use of the FW2X engine on either the 6ER or 8S aircraft.
GOALS AND OBJECTIVES

Perrin is seeking to ensure the supply of spare parts from Whittle to perform engine
maintenance on the previously sold 4S and 6S aircraft, without affecting the imminent
AmVac contract.

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Perrin would seek to ensure that maintenance agreements with customers on the
previously sold aircraft remain intact, as it is a highly lucrative aspect of Perrins

business.
Any agreement between Perrin and Whittle should not affect the completion of the

contract between AmVac and Perrin for supply of 20 6ER planes.

Perrin would also try to ensure that no compensation is paid to Whittle; as such
invitation to develop new engines did not result in a binding obligation to use those
engines.

Chetan + Kanungo + Indian

Chetan Kanungo is a registered Advocate practicing at the Gwalior Bench of the Jabalpur High
Court in Madhya Pradesh, India. . As an advocate, he has worked on business negotiations
involving software licensing as well as having mediated matrimonial disputes. He has
participated at the International Negotiation Competition 2009 held at Chicago & The
Negotiation Challenge 2010 held at Leipzig.
Nikhil+ Srivastava +Indian
Nikhil Srivastava is an Indian Male born on November 2, 1992 pursuing the B.A., LL.B (Hons.)
degree at the National Law Institute Univeristy, Bhopal. He was part of the team that won the
Best Negotiation Plan at the NLU Delhi-Herbert Smith Freehills International Negotiation
Competition 2014 held at Delhi, India and has also participated in debates and other mediation
competitions.
Aakash + Narang + Indian
Aakash Narang is an Indian male, born on December 11, 1992. He is a final year student
pursuing B.A., LLB (Hons) degree at the National Law Institute University, Bhopal. He has
represented the University at The Negotiation Challenge 2014 held at Reykjavik, Iceland and
also represented the University at the Sir Lawrence Street Negotiation Competition, 2013, held
at Perth, Australia.

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Rajeswari + Mukherjee + Indian
Rajeswari Mukherjee is an Indian female, born on February 7, 1995. She is currently pursuing
a B.A., LL.B. (Hons.) degree at the National Law Institute University, Bhopal. She was a part of
the winning team at the INADR Mediation Competition, 2014, held in Des Moines, Iowa. She
has also participated in debates, Model UN Conferences and moot courts.
Sanjana + Aravamudhan + Indian
Sanjana Aravamudhan is an Indian female born on the 26th of June, 1995 and is a student
pursuing a B.A LLB (Hons.) course at the National Law Institute University, Bhopal. She is a
part of the winning team at the INADR tournament at Drake University in Des Moines in
addition to participating in many debates both nationally and internationally.

Team Biographies (National Law Institute University, Bhopal)

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Mediation Plan On Behalf Of Perrin Aircraft Corporation