FBFK Law Secures Walk-Away Resolution in $5M International Arbitration Dispute

FBFK Law Secures Walk-Away Resolution in $5M International Arbitration Dispute

IRVINE, Calif. (May 13, 2026) – FBFK Law secured a complete dismissal of a $5 million damages claim against an international trust and escrow services company in a cross-border dispute involving international arbitration claims, Delaware bankruptcy court proceedings and coordinated legal strategy across the United States, Hong Kong and the United Kingdom.

The dispute arose from investment losses tied to a Cayman Islands investment product. The claimant sought $5 million in compensatory damages, along with a substantially larger indemnity claim connected to third-party exposure.

As the arbitration hearing approached, FBFK Law worked closely with the client’s co-counsel in the UK and Hong Kong to obtain an order requiring the claimant to post $500,000 as security for costs.  The claimant filed for bankruptcy protection in Delaware and asserted that the automatic bankruptcy stay prevented its arbitration claim from moving forward.  After FBFK Law moved quickly in the Delaware bankruptcy court to challenge the automatic stay, the claimant agreed to dismiss its claims against FBFK’s client in exchange for a waiver of costs.

The firm’s Orange County litigation team worked closely with its bankruptcy specialists to protect the client, overcome the automatic stay initiated by the claimant’s bankruptcy filing and brought the matter to a favorable close on the eve of the arbitration hearing.  FBFK’s ability to bring practical pressure, cross-practice collaboration and effective litigation strategies delivered exceptional results for its client and highlights FBFK’s growing capability in cross-border disputes.

The FBFK litigation team from the Orange County office included Ed Kim, Stephanie Pittaluga, Emily Griffin and Julie Valenzuela.  Rachael Smiley from the Plano, TX office led the firm’s bankruptcy court strategy in Delaware.

Media Contact:
Ekaterina Ferguson
Chief Marketing Officer, FBFK Law
[email protected]

About FBFK Law
With more than 20 years of legal expertise and success across Texas and the United States, Dallas-based FBFK Law is a people-first, entrepreneurial, full-service business law firm with offices in Plano, Houston, and Austin, Texas, as well as Orange County, San Diego and Century City, California. Driven by a commitment to building lasting client relationships grounded in high-quality representation and exceptional service, FBFK Law partners with clients nationwide across its core capabilities, including Corporate & M&A, Litigation & Trial, Intellectual Property, Labor & Employment, Tax, Bankruptcy & Restructuring, Commercial Real Estate, Health Law, and International Transactions & Dispute Resolution

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