Acsour’s lawyers have defended Uriage’s interests in court
Legal Digest \ 19.09.2019Uriage (Uriage Dermatological Laboratories LLC), the famous manufacturer of French skin care products, found itself faced with an unpleasant situation when its Russian distributor Epol (Epol LLC) refused to pay for the products supplied to it for subsequent sale. Because of the debt which had accumulated, Uriage was forced to apply to the court seeking to recover the price of the supply, as well as default interest for the non-performance of obligations under the contract. The company entrusted its legal representation to Acsour’s Legal Department.
It is not uncommon for distributors to demonstrate bad-faith conduct on the market where skin care products are sold and purchased. Such misconduct involves non-payment for products or non-compliance with the agreed conditions on which such products should be sold. To mitigate these risks Acsour recommends that you check in advance, before you contract with them, whether your clients are good-faith clients. Such due diligence (using your own resources or by engaging legal advisers) guarantees the security and success of your business.
In the case at hand - No. A40-177582/2019 - Uriage, as a supplying seller, performed its obligations under the supply agreement in full and by the specified deadlines. However, the Customer refused to pay for the products for no good reason. With reference to the Russian Civil Code (the “Civil Code”), according to article 309, obligations must be duly performed in compliance with the terms and conditions of a contract, requirements of the law or other legal regulations. Even if such conditions and requirements are not stipulated anywhere, the obligations must be fulfilled in accordance with business custom or other claims raised. It is not permissible to unilaterally withdraw or modify an obligation, except in cases provided for by Russian legislation (under article 310 of the Civil Code).
Consequently, in addition to the claim that the Customer should pay for the products supplied, Acsour’s lawyers claimed that the debtor should recover the losses resulting from non-performance or undue performance of the obligation under article 393(1) of the Civil Code. With the facts and arguments stated, the court upheld in full the claim of our client, Uriage Dermatological Laboratories LLC. The judgment the court issued satisfied the claims in full and awarded the debt, default interest and state duty from Epol LLC.