Multipolar-Wal-Mart suit

Multipolar-Wal-Mart suit

OAKLAND, California (AP): An Indonesian company, ordered by a federal judge to halt its suit against Wal-Mart by Monday or face fines of US$10,000 a day, has told the judge it needs more time to comply, a Wal-Mart lawyer said.

In a court declaration, a local lawyer for Multipolar Corp. said the company was "unable to respond to the court's order in a timely fashion" because its chief lawyer in Indonesia is busy in a police shooting trial, said Rodney Patula, a Wal-Mart attorney who received the declaration.

U.S. District Judge Claudia Wilken found Multipolar in contempt of court on June 5 for proceeding with a suit against Wal-Mart in an Indonesian court.

The two Wal-Mart franchise stores opened in the Jakarta area in August 1996 and January 1997.

Wal-Mart moved to end the franchise agreement last November, saying Multipolar had failed to pay royalty fees or provide necessary capital and had bought a direct retail competitor of Wal-Mart in Indonesia.

Multipolar, part of the Lippo Group, responded with a suit in Indonesia this February. It accused Wal-Mart of mismanaging the stores and misrepresenting its financial position, and sought more than $200 million in damages. Multipolar went to court in Jakarta in April, despite Wilken's order in March prohibiting the action on the grounds that Wal-Mart was likely to prove arbitration was required.