R3 v. Ripple Lawsuit To Be Decided In NY As XRP Loses Its Appeal To CA Court
Ripple Labs Inc., the company behind the Ripple settlement system, has lost its opportunity to hold the court hearing over a contested contract with its rival R3 in its home state, California, Bloomberg reported March 13.
In September 2017, the R3 consortium filed a lawsuit in Delaware and New York against Ripple, claiming that the latter had violated a prior agreement between the two companies about the purchase of XRP digital currency. The contract included an option allowing R3 to buy up to 5 bln XRP tokens at a price of $0.0085 each at any time before the end of 2019.
Ripple further filed a counterclaim in California, accusing its former partner of infringing on a number of commitments associated with the agreement.
When the two companies began suing each other, the value of the contract in dispute was a little over $1 mln. However, after several months of court proceedings the price of XRP surged in value, significantly increasing the stakes as the 5 billion XRP in question are now worth about $3.85 bln.
A San Francisco state appeals court denied Ripple’s petition to appeal the order that dismissed its lawsuit against R3.
The procedure in San Francisco followed a verbal ruling made by a Delaware judge to dismiss R3’s own case in October 2017. The outcome of this legal battle now depends solely on the future decision of a New York court.
As the San Francisco-based Ripple claimed, having to bring the case before a New York court would cause the company “irreparable injury.”