ASSISTANCE TO A COMMUNICATION / MARKETING GROUP / DISPUTE RELATED TO THE IMPACT OF COVID 19

First semester 2020:

Assistance to a communication / marketing group in the context of a dispute with its main supplier (supplier of products with high technical know-how that were key products for the sustainability of the client's activity). Various threats from the supplier and in particular that of immediately ceasing all services unless significantly compensated for the damage suffered as a result of COVID 19 ; the immediate interruption of the supply would have required that our client immediately find an alternative which was not feasible.

We obtained that the threat be not implemented. We also obtained significant other advances.

This dispute made it possible to apprehend several questions, in particular that of the qualification of COVID 19 in the event of force majeure, and that of the ownership of the stock of products manufactured by the supplier and of the stocks of paper purchased by the supplier for the manufacturing of these products.

A new contract has been negotiated and signed. This litigation was an opportunity to clarify the contract on many points, and to add to it in particular (i) the recognition of the property right of our client on the stocks of products in progress as they are produced, but without transfer of risk except at the time of delivery to our client of the finished product, (ii) a certain number of clauses to protect our client in the event of a sudden stop or threat of sudden stop of production and supply, (iii) a certain number of clauses to protect our client in the event of judicial safeguard, receivership or liquidation of the supplier.

By Dominique Dumas, lawyer and managing partner of Cabinet Dumas Structure, 13 Ter Bd Berthier, 75017 Paris - contact@dumas-structure.com

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