Our client, a major luxury brand had sold the exclusive rights to manufacture and distribute products to a subcontractor. At the term of the contract, the supplier sued the brand for alleged breaches of the exclusivity clause. Moreover, due to the COVID-19 crisis, the contractor considered that it was not able to take advantage of all the benefits provided by the contract and claimed for damages.
Following our review of the report of the claimant’s expert, we concluded that the approach followed was inconsistent and unsound: (i) the data used was not in line with the reporting provided to the brand and (ii) the approach was based on the erroneous assumptions that failure to achieve objectives was only due to the COVID-19 crisis and the alleged breaches of the brand. Ultimately, the tribunal acknowledged that the claimant was not entitled to any compensation.
