Kalbian Hagerty LLP, an Ally Law member in Washington, DC and Abu Dhabi, recently won an important victory for its Saudi client, Arabian Support & Services Co., Ltd. (“ASASCO”), in an appeal before the First Circuit Court of Appeals.

The First Circuit held that the lower court erred in dismissing ASASCO’s claim against Textron Services Corporation (“TSC”) under Massachusetts Chapter 93A for unfair trade practices and deceptive acts.  ASASCO alleges that the defendant, a Massachusetts-based defense contractor, made numerous false representations regarding the manner in which ASASCO would be compensated for its involvement in helping  TSC win a sales contract involving a weapons system worth hundreds of millions of dollars in the Kingdom of Saudi Arabia.

Relying heavily upon the case law cited by Kalbian Hagerty, the appellate court rejected Defendant’s argument that an integration provision in a written agreement between the parties should act as a barrier to ASASCO’s claim based on oral representations.  The Court concluded that “the integration clause does not necessarily exclude the Chapter 93A claim and the record contains facts that, depending on the surrounding circumstances could support an inference of deception.”  The Court ultimately concluded that “ASASCO has identified evidence that raises sufficient doubts concerning Textron’s actions and motivations that a violation of Chapter 93A is viable.”

The Court further ruled that ASASCO should be permitted to amend its Complaint to include other claims alleging fraudulent misrepresentations made by TSC.  The case will now return to the District Court where ASASCO will be permitted to pursue its claims (including a claim for treble damages and attorneys’ fees).

A copy of the Opinion in Arabian Support & Services Co., Ltd. v. Textron Services Corporation, Case No. 16-1309 (1st Cir. Apr. 19, 2017) is available on the First Circuit’s website at http://media.ca1.uscourts.gov/pdf.opinions/16-1309P-01A.pdf.