Nishimura & Asahi successfully represented a client in litigation upholding vendor liability for system development failures
Leading Japanese law firm Nishimura & Asahi represented Z-kai Inc. in a lawsuit filed by Z-kai Inc. against a famous system vender. On February 24, 2022, the Tokyo District Court ruled in favor of our client and found the vender liable for damages due to system failures caused by defects in its outsourced core system.
The vender appealed the Tokyo District Court decision, but on October 5, 2022, the Tokyo High Court fully upheld the decision and dismissed the appeal. Since the vender failed to file an appeal by the deadline, the judgment in favor of our client became final and binding.
The Nishimura & Asahi team advising Z-kai Inc. was led by partners Masako Yajima, Daisuke Morimoto and Satoshi Niki, supported by counsel Toshihiko Hamano, and Takahiro Toma.
In addition to corporate disputes such as shareholder derivative actions and share purchase demands, she has numerous experiences in technology disputes related to plant accidents, product accidents, patent infringement, system development troubles, etc., soil contamination disputes, insurance disputes including reinsurance, labor disputes, and consumer disputes. Her main publications include "International Arbitration and Corporate Strategy: Bridging Theory and Practice" (Auther, Yuhikaku, 2014), "Current Status of Litigation Procedures and Defense Practice Issues Associated with Corporate Activities in the United States" (co-author, Jurist No. 1474, December 2014), "Overview of Intellectual Property Law (5th Edition)" (co-editor, Kobundo, 2013), "Judgments Concerning M&A, etc. and Directors' Duty of Care in Good Faith" (Jurist supplement, May 2013), "M Judgment on M&A, etc. and Director's Duty of Care" (Juristo, May 2013 issue, "Selection of M&A Reorganization Precedents Effective in Practice"), "Commentary on Appeal Court Decision in Fukuoka Fish Market Shareholders' Representative Suit Case - Parent Company Director's Responsibility for Subsidiary Management and Relief" (co-author, Junkan Shoji Homu No. 1970, July 5, 2012 issue), etc. No. 1970, July 5, 2012), etc.
Mr. Morimoto has a high degree of expertise in complex transactions, such as takeover bids and complicated transactions involving multiple reorganizations. He has extensive experience in cross-border transactions, both from domestic and international perspectives, and is deeply familiar with a wide variety of international legal frameworks. He represents a large number of international clients and, based on his knowledge of the legal frameworks of the jurisdictions in which his clients operate, he advises on Japanese law in comparison with the laws of other countries. In the field of corporate crisis management, he has handled a broad range of anti-bribery matters, including those related to the Foreign Corrupt Practices Act (FCPA). He has extensive experience in advising on matters which include the development of anti-bribery compliance programs, anti-bribery due diligence, and internal investigations of suspected bribery cases. In recent years, he also has handled a wide variety of fraud investigations involving accounting irregularities and non-compliance matters, both for Japanese companies and their overseas subsidiaries.
Satoshi manages a wide range of domestic and cross-border M&As, capital and business alliances and technology alliances where intellectual property rights and technologies, such as semiconductors, autonomous driving, electric vehicles, AI, and systems, were important elements to the transaction. Satoshi is also heavily involved in supporting high-tech startups such as space development, quantum computers, and regenerative medicine, and has extensive experience in contract structure ground design and contract negotiations for building new businesses. In addition, Satoshi makes use of his engineering background to deal with a number of disputes, such as patent infringement proceedings and disputes related to defects in advanced technology products, where technical issues are the main issues.
He graduated from the University of Tokyo Graduate School of Frontier Sciences (M.S.) in 2004. Due to his technical background, he advises clients on various technology matters, including artificial intelligence (AI), data protection, medical field, healthcare, software, system, cloud computing, information technology, and DX. He has deep knowledge of artificial intelligence because he studied neural networks, which is the main technology of artificial intelligence, in an academic lab for three years. He successfully passed the Japanese patent attorney examination in 2002, and he has been admitted in Japan since 2009. Therefore, he advises clients on various intellectual property law matters due to his technical background and knowledge as a Japanese patent attorney. Regarding dispute matters of intellectual property, he has handled patent litigation, litigation regarding employee inventions, trade secret litigation and so on. Especially, he has considerable experience in trade secret disputes, and he provides a support service on countermeasures against divulging trade secrets, including drafting company regulations, data management practice, and employee training.