IDT Corp. v. Morgan Stanley Dean Witter & Co.
New York Court of Appeals
1Opinion of the Court
OPINION OF THE COURT
Pigott, J.
IDT Corporation and Telefonica Internacional, S.A., both telecommunications companies, executed a Memorandum of Understanding (MOU) in August 1999 concerning SAm-1, a vast underwater fiber-optic cable network Telefonica was building. Pursuant to the MOU, IDT was to buy from Telefonica a 10% equity share in NewCo, a corporation that would “construct, establish, operate and maintain . . . and . . . sell capacity on” SAm-1. A separate entity was to be created to market products associated with the network. IDT would have the right to buy capacity in the network, at…
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