SES, Intelsat Disagree on Summary Judgment Motions

The C-Band Alliance agreement used deliberately broad language that "clearly encompassed" the public auction approach the FCC opted for in C-band clearing, and the parties' course of performance confirms a shared understanding that the alliance partnership would continue if the FCC went the public auction direction. That per an SES response Friday (in Pacer, docket 20-32299) in U.S. Bankruptcy Court in Richmond to Intelsat's motion for summary judgment seeking to have SES' $1.8 billion claim against Intelsat tossed (see 2106170043). It said the record "overwhelmingly demonstrates Intelsat’s enthusiastic and consistent participation" in the Alliance for months after the FCC announced the public auction plan in November 2019. Intelsat, in a response to SES' motion for summary judgment, said (in Pacer) SES ignores the Alliance contract and backtracks from its past statements confirming that if the FCC rejected the Alliance-advocated approach, the Alliance would disband. It said SES claims of breach of fiduciary duty are explicitly disclaimed by the consortium agreement, and New York law, which governs the Intelsat/SES dispute, rejects any such duty between contractual parties working through a complex business transaction.