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Virtual Defense and Development International, Inc. v. The Republic of Moldova

133 F. Supp. 2d 1 (1999)

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Virtual Defense and Development International, Inc. v. The Republic of Moldova

United States District Court for the District of Columbia
133 F. Supp. 2d 1 (1999)

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Facts

Virtual Defense and Development International, Inc. (Virtual) (plaintiff) sued the Republic of Moldova (Moldova) (defendant) to recover damages for breach of contract after Moldova refused to pay Virtual $9 million in fees on a contract to assist with the sale of several MiG-29 fighter jets. Moldova initially arranged to sell the jets to Iran but backed out of the sale at the urging of the United States. Moldova then entered into an agreement with Virtual, authorizing Virtual to negotiate a sale of the jets with the US government’s approval. Moldova ultimately sold the jets to the US for $40 million in cash and $100 million in economic aid, but Virtual alleged that the contract price was $60 million in cash. Virtual also alleged that Moldova had agreed to pay a 15 percent commission to Virtual for a successful negotiation to sell the jets. After Moldova refused to pay the commission Virtual demanded, Virtual filed suit. Moldova filed a motion to dismiss.

Rule of Law

Issue

Holding and Reasoning (Urbina, J.)

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