Kemper announces confirmation of arbitration award of its subsidiary
Kemper announced that the US Court of Appeals for the Fifth Circuit has affirmed a district court ruling that confirmed an arbitration award in favor of its subsidiary, Kemper Corporate Services, against Computer Sciences, or CSC. The decision of the arbitrator, issued in November 2017, found that CSC had breached a contract for the delivery of certain policy administration and billing software, and awarded to Kemper direct damages, prejudgment interest, and costs and expenses associated with the arbitration. Subsequently, in September 2018, the United States District Court for the Northern District of Texas confirmed the award and entered judgment in the amount of $141.7M against CSC and its parent, DXC Technology. CSC and DXC appealed the district court's ruling to the Fifth Circuit Court of Appeals in late 2018, and in the meantime paid Kemper a total of $55.8M in partial satisfaction of the final judgment. Kemper recognized $35.7M of such payments in other income in its consolidated statement of income for the year ended December 31, 2018 and $20.1M of such payments in other income in its consolidated statement of income for the nine months ended September 30, 2019. The unpaid balance of the judgment, including post-judgment interest, was approximately $89M at December 31, 2019.