C-Band Alliance Agreement 'Bollixed-Up,' Judge Says in Oral Argument

U.S. District Judge Robert Payne seemed open to deciding multiple times during oral argument Monday a U.S. Bankruptcy Court had erred in dismissing SES claims against Intelsat over the collapse of the C-Band Alliance (CBA) (see 2210030050). Oral argument before the U.S. District Court for the Eastern District of Virginia in Richmond (docket 3:22-cv-00668) lasted more than three hours. Observing the Bankruptcy Court decision seemingly sidesteps SES' arguments and evidence about course of performance and all the work the two did jointly after the FCC's C-band order determining that the satellite operators wouldn't negotiate directly with wireless carriers for the C-band spectrum and reap all the rewards, "You've got to address" important evidence, Payne said. After SES counsel Helgi Walker of Gibson Dunn argued that Bankruptcy Court addressed only the negotiating history that Intelsat filed but ignored SES-submitted negotiating history evidence -- which is another instance where the judge could reverse and remand, she said -- Payne acknowledged it was an error to focus on evidence provided by one side but not the other, but he questioned whether it was reversible error. Intelsat and SES separately maintain the CBA agreement unambiguously backs their opposing stances, but Payne found it far less clear. "It's a bollixed-up contract in my judgment," he said. Payne said he might require additional briefing. Counsel for both companies said there had been mediation discussions, but not recently. "It does seem to me to be a case where reasonable people could reach a compromise," Payne said. "You both have some risks here."