MBI France is a privately owned business located in France engaged as commercial agent within the furniture market sector. Bodilsen is a Danish manufacturer of pine furniture. In 1996 Bodilsen appointed MBI France to act as commercial agent on the French retail market for furniture. At the time (1996) Bodilsen had no customers in France.
In February 2004 Bodilsen terminated the relationship giving 6 months notice. Later, in June 2004 Bodilsen argued that MBI France was in breach of contract and brought the relationship to an immediate end.
MBI France raised a claim for recovery of lost commission as well as a claim for indemnity as provided for under Danish law. The Court rejected the arguments for breach raised by Bodilsen and awarded MBI France a flat-rate amount for loss of commission income.
However, the court dismissed the claim for indemnity. The court found no reason to believe that Bodilsen would continue to derive ‘substantial benefits’ from the business with the customers brought by MBI France. The assessment by the Court was based on an analysis of the significant decrease in turnover during the last period of the relationship.
Michael H. Svendsen, agency & distribution Country Expert for Denmark.