ALERTS: UNFAIR COMMERCIAL PRACTICES – SUDDEN BREAK OF ESTABLISHED BUSINESS RELATIONSHIPS

1620.Sudden break-up: The Paris Court of Appeal clarifies the effectiveness of the notice and on the compensation of a service provider brutally ousted who ceased his activity (Lokama / Madinina logistique)

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This article was first published in the Lettre de la distribution published by the Centre du Droit de l’Entreprise of the University of Montpellier.

Facts are that Nestlé France has been using two companies, subsidiaries of the same holding company, to provide logistics services for some fifteen years, one in Martinique and the other in Guadeloupe. The latest contract, like the previous ones, is for a fixed term of several years with an option to terminate without cause, with one year's notice. The contract was terminated before the end of the term at Nestlé's initiative in application of the latter option and apparently at the same time as a call for tenders was issued, the reality of which is, however, disputed. These few elements constitute the framework of a tangle methodically unravelled by the Court, which was asked to assess the brutality of this termination in application of the former Article L. 442-6, I, 5°. The

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Clémence Mouly-Guillemaud, 1620.Sudden break-up: The Paris Court of Appeal clarifies the effectiveness of the notice and on the compensation of a service provider brutally ousted who ceased his activity (Lokama / Madinina logistique), 19 May 2021, Concurrences N° 4-2021, Art. N° 101732, www.concurrences.com

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