Collo vs McDo

Written submissions · 9 Feb 1998

Hearing submissions — part 1

A party's pleadings: grounds and claims filed before .

Type
Pleadings / procedural document
Date
9 Feb 1998
Parties
Bernard Collorafi v. McDonald’s France

Summary

Summary sheet

Franchisee's written submissions — hearing of 9 February 1998

Overview: written submissions (first part) filed on behalf of Mr Bernard Collorafi and the companies SEBOL, B et O and LES PINS, for the hearing of 9 February 1998.

Key points

The written submissions argue that the absence of an exclusivity clause does not authorise every practice and that the spirit of partnership of the franchise agreement prohibits the organisation of internal competition. They criticise McDonald's for opening a restaurant in Vallauris within the catchment area of SEBOL and B et O, reducing their turnover, in breach of article 3 of the code of ethics of the Fédération française de la franchise. Relying on a report by the expert Robert Gandur, they propose sustainable annual fees:

  • SEBOL: 252,000 F excl. VAT
  • B et O: 992,000 F excl. VAT
  • LES PINS: 934,000 F excl. VAT

In the alternative, in the event of termination attributable to McDonald's, they claim damages of several million francs per company, 2,000,000 F for Mr Collorafi's non-material damage and an award under article 700.

Significance

Statement of the franchisee's grounds challenging the franchisor's development policy and the balance of the fees.

Sheet generated automatically from the transcription of the document.

Download the summary sheet (PDF)

The original scan

Download the original scan (PDF)

Full transcription

Text obtained by optical character recognition (OCR) of the original scan, layout preserved. Automatic recognition — errors remain, especially on degraded faxes. The scan above is authoritative.

Pg: 1 It is obvious that the absence of an exclusivity clause does not authorise just any practice. The spirit of the franchise agreement must remain that of a partnership, which excludes any organisation of internal or even external competition. constituting bad faith and abuse of economic dependence. If the company MC DONALD'S has the right to develop in FRANCE and abroad, it is obvious that this objective must not be in contradiction with the principle of good faith which must govern contractual relations and cause loss to the franchisees. If one pushed to the end the more or less explicit reasoning of MC DONALD'S, which maintains that it can open anywhere, in any way and at any time, one would end up with a self-destruction of the network, since the market is not extensible to infinity. Even without the franchisor is in charge of the development, it must do so without this development harming the legitimate interests of the members. By opening a restaurant in the catchment area of the company SEBOL and of the company B et O at VALLAURIS, and by reducing the turnover and profitability of these two businesses, after having put Monsieur COLORAFI under the obligation to open a second restaurant against his will, then a third, it goes against one of the principles laid down in the CODE OF ETHICS of the FÉDÉRATION FRANÇAISE DE LA FRANCHISE to which the company MC DONALD's belongs. Article 3 of the CODE OF ETHICS of the FFF “The franchisor must conduct the development of its network of franchised points of sale in such a way as not to undermine the chances of each of them, and must refrain from any practice contrary to this objective, such as a pyramid system of distribution It appears that the unilateral decision of the franchisor taken despite the opposition formally expressed by the franchisee, to allocate a new restaurant at VALLAURIS to another franchisee located further away in time and space, is also a contractual fault which engages the liability of the franchisor, the company MC DONALD'S. It is moreover in contradiction with the long-standing practice in the network, from which the company MC DONALD'S seems to have unilaterally departed, of allocating restaurants to the nearest franchisees. No doubt, the fact that Monsieur Patrick GILARSKI, franchisee in CANNES, held for several years senior positions in the hierarchy of the company MC DONALD's is not unrelated to the favour that was shown to him. It appears that the scorched-earth strategy of openings (some have spoken of Vietnamisation), which the company MC DONALD's has been developing for some years, is not in keeping with the spirit of the agreement and is moreover in contradiction with the forecast documents which it gives to each of its franchisees, after a market study. Pg: 2 It should indeed be recalled that if the forecast turnover for the company SEBOL was reached (and even thanks to the hard work of Monsieur COLLORAFI since he reached 27,000,000 francs in 1994 instead of 20,000,000 francs forecast), this turnover fell back to 11,500,000 francs in 1997. Likewise, the company B & O was promised 20,000,000 francs (totalled over ten years at 205 million) and the EURL LES PINS a turnover of 15,100,000 francs (totalled over ten years at 142,348,000 francs). It is therefore a total of 52,000,000 francs that at cruising speed the three restaurants were to reach according to the very submissions of the company MC DONALD'S, the turnover of the last year is 31,000,000 francs, i.e. 60% of this forecast. ON THE ANALYSIS OF THE BALANCE SHEETS OF THE THREE companies SEBOL, B & O, and EURL LES PINS Following the formal notice given by the company MC DONALD'S to the three companies to pay the fees, and knowing the impossibility of settling them in full, Monsieur Bernard COLLORAFI took the initiative, and entrusted Monsieur Robert GANDUR, court-appointed expert approved by the Court of Cassation, with the task of drawing up an exhaustive and objective report on the evolution of these companies since the outset. This report is edifying since: - on the one hand, it exposes the implacable mechanism of the strategy of limiting the opening of points of sale by the former franchisees, hence the limitation of the turnover of those in parallel the turnover of MC DONALD'S FRANCE increases regularly and powerfully (+ 54% in three years) through the opening of new restaurants. This report, which will be referred to later to calculate the loss, has, at the request of Monsieur Bernard COLLORAFI, undertaken to determine the rents and fees paid to MC DONALD's that would be bearable by the companies SEBOL, B & O and LES PINS. its conclusions are eloquent, since, if - the company SEBOL paid 736,000 francs per year instead of 1,800,000 francs excl. VAT of minimum fees, - the company B & O the sum of 1,172,000 francs instead of 2,260,000 francs excl. VAT - and the company LES PINS a sum of 1,034,000 francs instead of 1,200,000 francs excl. VAT i.e. a total sum of 2,932,000 francs instead of 5,160,000 francs per year, the said companies Fax received from : 01 45 27 67 13 Py: 3 “would not achieve a positive accounting result, the results of the said companies being respectively losses of 434,100 francs, 240,000 francs and 100,000 francs, i.e. a total of 824,000 francs.” It can therefore be said that the reasonable fee that the company MC DONALD'S should have proposed (as it had done in principle by letter of 12 February 1997), should have been 2,982,000 francs - 824,000 francs, i.e. 2,158,000 francs, namely - for the company SEBOL... - for the company B & O - for the company LES PINS ... 252,000 francs excl. VAT 932,000 francs excl. VAT 934,000 francs excl. VAT One may find in this refusal to negotiate and to seek a solution to get Monsieur Bernard COLLORAFI and his companies out of the rut into which they had been plunged, an additional fault against the spirit of the agreement performed in bad faith. ON THE ABUSIVE EXPLOITATION OF A STATE OF ECONOMIC DEPENDENCE It should be recalled that under the terms of article 8 of the ordinance of 1 December 1986, “is prohibited under the same conditions the abusive exploitation by an undertaking or a group of undertakings 1) of a dominant position on the domestic market or a substantial part of it 2) of the state of economic dependence in which a customer undertaking of the supplier finds itself in relation to it, which does not have equivalent solutions. these abuses may notably consist in refusal to sell, tied sales or discriminatory sales conditions, as well as in the breaking of established commercial relations, on the sole ground that the partner refuses to submit to unjustified commercial conditions”. It appears obvious that article 8 of the ordinance of 1 December 1986 is applicable in this case since: - there is a dominant position of the company MC DONALD's on the market, which represents more than 70% of the restaurants specialising in hamburgers - there is a state of economic dependence between the company MC DONALD's and the appellant companies: - the said companies, having signed lease-management agreements, do not have equivalent solutions, and all the more so as the agreement forbids them any possibility of operating the business in any way other than in accordance with MC DONALD'S standards Pg: 4 It is no less obvious that the breaking of commercial relations which has just occurred through the termination of the agreement is an abuse within the meaning of article 8, Monsieur COLLORAFI and his companies refusing to submit to unjustified commercial conditions. The commercial conditions of the companies managed by Monsieur Bernard COLLORAFI are particularly unjustified, notably those which were imposed on the second company, the company B & O, and on the company EURL LES PINS (which did not have the possibility of discussing them) Indeed, Monsieur Bernard COLLORAFI, owing to the strategy initiated by the company MC DONALD's of openings everywhere notwithstanding the interest of the franchisees in place, had no other solution than to submit or resign. This is moreover what the Court of Cassation has just decided, in a judgment of 6 December 1937 dismissing the appeal lodged by the company PRODIM (PROMODÈS group) against a judgment of 5 October 1995 by the Court of Appeal of ROUEN, in favour of the DEVAL family. The Court of Cassation confirms that article 8 of the ordinance of 1 December 1986 is indeed applicable to relations between franchisors and franchisees, notably when the franchise agreement is accompanied by a lease-management agreement. ON THE WRONGFUL TERMINATION OF THE AGREEMENTS BY THE COMPANY MC DONALD'S under the pretext that the companies B & O and EURL LES PINS had not paid the fees in full but only partially, the company MC DONALD'S believed it had to give them formal notice and then terminate the agreements, invoking the termination clause provided for therein. It is obvious that as a result of its decision in the primary catchment area of the company SEBOL. it is it which caused the collapse of the turnover and profitability of the company SEBOL and then of the company B & O. It is therefore entirely responsible for the partial non-payment of the fees and cannot invoke this ground to terminate the agreement. it should dismiss outright and simply its claim for termination. It would in any event be appropriate: - to suspend the operation of the termination clause - to grant the appellant companies two years to settle their debts brought back to an economically bearable fee 17:10 Pg: 5 - to set the bearable fee at: 252,000 francs for the company SEBOL (two hundred and fifty-two thousand) 932,000 (nine hundred and thirty-two thousand) for the company B & O 934,000 francs for the company LES PINS (nine hundred and thirty-four thousand) and/or to appoint such expert as the Court may see fit to designate to give it the elements enabling it to rule on the reasonable fee IN THE ALTERNATIVE Should the Court consider that the clause can operate, it would nonetheless be the case that this termination must be pronounced at the wrongs and grievances of the company for the non-payment of the fees caused by its ill-considered strategic decisions. In addition to compensation for the loss which will be defined below, it will be appropriate in this case to enjoin the company MC DONALD'S which would take over the restaurants, for example the company MC DONALD'S NICE, to take over all the staff of the three companies B & O and PINS, as well as the staff of the SID SODEVA which handles the financial management of the three restaurants, it is appropriate for the Court to say that the companies SEBOL, B & O and the EURL LES PINS were entitled to raise the exceptio non adimpleti contractus and since to settle everything fees, the obligations undertaken by the Company MC DONALD's were not performed in good faith. Fo: 18 prosine ses Par 10s Cede songes acine n bernard COLLCRAFI. 4. ON THE LOSS It should be recalled that Monsieur COLLORAFI was placed under the obligation to summon the company MC DONALD's on 26 June 1997, i.e. two months after the opening of the restaurant managed by the company EUR LES PINS at ANTIBES NORD and of the restaurant managed by Monsieur GILARSKI at VALLAURIS. This summons followed the failure of the negotiations that Monsieur COLLORAFI attempted to open during the last months of the year 1996 and the first half of 1997.. At that time, Monsieur Bernard COLLORAFI did not know the extent of the catastrophe and had assessed his loss subject to increase or reduction. Py: 6 =9 As indicated above, orally at the end of 1997 then by letter of 8 January Monsieur Robert GANDUR, expert approved by the Court of Cassation, on the following points: *- to assess at 1 January 1998 the impact of the opening of the MC DONALD'S ANTIBES NORD and OUEST and VALLAURIS restaurants on the turnover and results of the company SEBOL operating the ANTIBES restaurant, CARREFOUR shopping centre; - to assess at 1 January 1998 the impact of the opening of the ANTIBES OUEST and VALLAURIS restaurants on the turnover and the results of the company B & O operating the ANTIBES NORD restaurant - to determine fees paid to MC DONALD'S bearable by the companies SEBOL, B & O and LES PINS January 1998 by the company MC DONALD's by capitalising the loss of gross self-financing margin (MBA) for the duration remaining on the agreements. Monsieur Robert GANDUR, after on site, examined the documents which were supplied to him by the three companies and he made the following observations: Reminder (pages 2 to 4) After having recalled that the flat-rate base fees provided for in the three agreements, as well as the turnover forecasts. - that throughout 1997, the first full year of operation, the company B & O achieved a turnover of 13,500 000 francs), only lower by a third than the forecasts and will have to record a net loss of 1,200,000 - that the first financial year of the company LES PINS covers only eight months, since the ANTIBES restaurant was opened on 29 April 1997. turnover is 6,400,000 francs, i.e. an annual trend of 9,300,000 (instead of 13,000,000 francs forecast), while the loss suffered over the eight months should reach 440,000 francs. He then specifies, the collapse of the turnover of the company (from 24,700,000 francs in 1995 to 18,300,000 francs in 1996 and 11,700,000 francs in 1997), the large discrepancies between the operating forecasts given by MC DONALD'S at the time of the openings of ANTIBES NORD and OUEST and the reality, the lack of profitability of the three restaurants managed financial consequences that ensue, Monsieur Bernard COLLORAFI questioned on the origin of these difficulties and on the palliatives to be provided.* Py: 7 and recalls that: “The company MC DONALD'S FRANCE has just terminated on 2 January 1998 the three agreements, because the companies of Monsieur COLLORAFI were unable to honour in full the contractual fees”. Characteristics of the activity (pages 5 to 9) The consultant then notes that: “This market is dominated by the two brands, MC DONALD'S and QUICK; it develops more through the extension of the number of points of sale than through the increase in the unit turnover of existing restaurants, whose maturity is reached after one year of operation. If MC DONALD'S saw its French turnover, in own operation as in lease-management, go from 5.L billion in 1994 to 8.l billion in 1997 (+ 55%) it is thanks to the increase in the number of restaurants which grew from 351 to 610 (+ 78%), while the turnover of the restaurants operated throughout the period increased by only 2.21% in 1995 and decreased by 9.33% in 1996 and 1.13% in 1997. That is to say that the development strategy of MC DONALD'S in FRANCE - and therefore its turnover, stemming notably from the fees and royalties of the lessee-managers - rests on the increase in the number of restaurants and not on that of the turnover of existing restaurants, the new restaurants being located either on sites until then unexplored, or on markets where the existing restaurants have reached a turnover estimated optimal by the lessor.” In a very precise table, Monsieur Robert GANDUR shows: * that in the ALPES MARITIMES and the VAR, the number of restaurants went from sixteen in 1993 to twenty-eight in 1997 * that the total turnover went from 270,000,000 francs to 415,000,000 francs, i.e. an increase of 14.81% in 1994, 9.68% in 1995, 5.58% in 1996 and 5.60% in 1997 while the average turnover per restaurant went from 16,875,000 francs in 1993 to 18,235,000 francs in 1994. He concludes that: to peak at 18,889,000 francs in 1995 and fall back to 15,609,000 francs in 1996 and to 14,821,000 francs (fourteen million eight hundred and twenty-one thousand francs) in 1997. Py : 8 He concludes that: * The evolution of the turnover of the so-called “comparable” restaurants according to the definition of the chain, and this whatever the perimeter used, national, regional or local, is marked by a virtual stagnation in 1994, a rise of 1 to 5% in 1995, a sharp fall in 1996 due to the mad cow crisis (-8%) and a new stagnation in 1997 (-0 to 1%), which moreover explains why the forecasts of MC DONALD'S FRANCE at the time of new openings refer to figures stabilised after one year. » the Consultant specifies that to analyse the restaurants operated by Monsieur COLLORAFI, he will consider that the evolution of the turnover should have followed, barring changes in the local market, that of the comparable restaurants of the brand in the ALPES MARITIMES and the VAR. ASSESSMENT OF THE IMPACT OF THE OPENING OF THE MC DONALD'S NORD and OUEST and VALLAURIS RESTAURANTS ON THE COMPANY SEBOL (pages 10 to 25) After having recalled in a table the turnover month by month and year by year, 27,488,909 francs 26,965,840 francs 24,638,839 francs 18,305,795 francs 11,654,693 francs he represents in an extremely telling graph the catastrophe that occurred from October 1996. Monsieur Robert GANDUR assesses the impact of the opening of QUICK at a loss of turnover of 1,702,235 francs. He assesses the loss of turnover of SEBOL due to the opening of the restaurant of the company B & O in October 1996 at 1,803,610 francs, and that of 1997 due to the openings of ANTIBES NORD and OUEST (LES PINS) and of VALLAURIS (franchisee Patrick GILARSKI) at 7,619,056 francs (page 21). As regards profitability, he specifies: “until 1996, even after the opening of QUICK, the break-even point was below the turnover, that is to say that profitability was assured, limiting the losses - the turnover became lower than the break-even point, making losses inevitable.” (page 22) Thus, it follows from the calculations of Monsieur Robert GANDUR that the company SEBOL lost 1,803,610 francs of turnover in 1996 (one million eight hundred and three thousand six hundred and ten francs) and 7,619,056 francs in 1997 (seven million six hundred and nineteen thousand and fifty-six francs) as a result of ANTIBES NORD (in October 1996) and OUEST and VALLAURIS (in April 1997). Py: 9 turnover of SEBOL would have been (the incidence of the opening of QUICK being taken into account) of - 20,109,405 francs in 1996 - 19,273,749 francs in 1997 The loss of gross margin linked to the openings of ANTIBES NORD, ANTIBES OUEST, and VALLAURIS was: 557,480 francs in 1996 - 3,977,314 francs in 1997 ASSESSMENT OF THE IMPACT OF THE OPENING OF THE RESTAURANTS OF ANTIBES OUEST and VALLAURIS ON THE COMPANY B & O OPERATING THE ANTIBES NORD RESTAURANT Taking up the same calculation for the company B & O, Monsieur Robert GANDUR estimates: that the loss of turnover suffered by B & O as a result of the opening of ANTIBES OUEST and VALLAURIS is 15.32%, i.e. 1,350,000 francs The impact on the result can be estimated at 315,000 francs DETERMINATION OF THE RENTS AND FEES PAID TO MC DONALD'S THAT ARE BEARABLE BY THE COMPANIES SEBOL, B & O AND LES PINS The consultant specifies: “the level of base rents and fees presumed bearable is that which would make it possible to achieve, after repayment of the loan instalments and capital, a nil gross self-financing margin, that is to say without worsening the financial situation. these bearable base rents and fees are: 736,000 francs for SEBOL (against a current minimum fee of 1,800,000 francs) - 1,172,000 francs for B & O (against a current minimum fee of 2,240,000 francs - 1,034,000 francs for LES PINS (against a current fee of 1,200,000 francs) » He adds: “I STRESS THAT THESE BEARABLE BASE RENTS AND FEES DO NOT MAKE IT POSSIBLE TO ACHIEVE A POSITIVE ACCOUNTING RESULT. IF THE BASE FEES WERE BROUGHT DOWN TO THESE AMOUNTS, THE RESULTS OF SEBOL, B & O AND LES PINS WOULD BE LOSSES OF 434,000 FRANCS (SEBOL), 240,000 FRANCS (B & O) AND 100,000 FRANCS (LES PINS). Py: 10 TO OBTAIN A NIL ACCOUNTING RESULT, THE BASE RENTS AND FEES WOULD HAVE TO BE BROUGHT DOWN RESPECTIVELY TO 252,000, 932,000 AND 934,000 FRANCS » CAPITALISATION OF THE LOSSES OF GROSS SELF-FINANCING MARGIN OVER THE DURATION OF THE AGREEMENTS NORMALLY REMAINING TO RUN To carry out these calculations, the consultant took into account the following losses of gross self-financing margin: “For SEBOL the loss of margin on variable costs, after deduction of the savings on fixed costs (estimated for 1997 at 1,313,000 francs) (one million three hundred and thirteen thousand francs) following the openings of ANTIBES NORD and OUEST and of VALLAURIS. To this is added the loss of margin on additional costs which SEBOL should suffer from January to April 1998, the turnover from January to April 1997 not having been affected by the openings at the end of April 1997 of ANTIBES OUEST and of VALLAURIS this loss of margin is assessed at 102,000 francs for a loss of turnover of 342,000 francs (three months' turnover from January to April 1997 x 9.02% affected by a margin rate on - For B & O and LES PINS the difference between the margin shown in the forecast document given by MC DONALD'S to Monsieur COLLORAFI at the signing of the lease-management agreement, self-financing forecast for calculated in the preceding paragraph Owing to the modification presumed permanent of the catchment area of the companies of Monsieur COLLORAFI, I considered that these losses of margin were recurrent until the normal end of the lease-management agreements. For the discounting period, I used the number of years (or fractions of years) remaining to run until the normal end of the lease-management agreements. For LES PINS, an agreement whose normal end is 28 April 2000 and which may be extended at the sole initiative of the lessee-manager until 28 April 2017, I used the number of years (or fractions of years) remaining to that last date. To discount these losses, I adopted a discount rate of 8%, corresponding to the current rate of long-term government loans (ten years), i.e. 5.80%, increased by a risk premium of 2.20% Pg: 11 The result is the capitalisation of the losses of gross self-financing margin over the agreements remaining to run, as shown in the table. SEBOL B & O LES PINS - Loss of margin on variable costs (net of savings on fixed costs ... - Forecast MBA MC DONALD'S ... - Forecast MBA 1998 ... - Gap in gross self-financing margin (1,348,200) = 239,000 (361,000) ---_ 1,718,000 - Number of years remaining to run until the end of the lease-management agreement .. 19.75 19.33 - Capitalisation coefficient (discount rate 8.00%) - Capitalised loss or gap in margin ... 9.37522722 10.20365779 It can therefore be considered that the loss suffered by each of the companies, as a result of the wrongful termination of the agreements by the company MC DONALD's on 2 January 1998 is equal to the capitalisation of the losses of margin over the duration of the agreements normally remaining to run - Company SEBOL ... - Company B & O... - Company LES PINS 9,576,354 francs 22,193,563 francs 13,214,734 francs ON THE LOSS PERSONALLY SUFFERED BY MONSIEUR COLLORAFI Monsieur COLLORAFI is one of the pioneer franchisees of the MC DONALD's network, since he is the 18th franchisee and opened the 45th restaurant. Py: 12 Throughout his professional life in the service of the MC DONALD'S network, he received nothing but praise, nothing but good QUALITY, SERVICE, CLEANLINESS ratings. No reproach was made to him for ten years. Suddenly, an attempt is made to remove him from the network a first time by forbidding him to attend the MARRAKECH convention on 27 June 1997 then, while he was urgently asking for a solution to his problem to be found, the company MC DONALD'S brutally gave him formal notice to pay fees that it knows perfectly well he cannot pay. Without leaving him the respite of the “Christmas truce”, the company MC DONALD'S terminates the agreement one month and three working days after the formal notice. the company MC DONALD'S does not hesitate, although it has not filed submissions before the Court, and has not termination of the agreement from the competent Judge, to sign with one of its subsidiaries a lease-management agreement a legal notices newspaper, together with the notice of the termination which has not yet been pronounced by the Court! To complete the strategy of ousting and denigrating Monsieur COLLORAFI, he is pointed at before the whole network by a circular dated 14 January 1998, whereas the next day, the summary proceedings judge refuses to endorse MC DONALD'S and very legitimately refers the matter to the trial judge. One would not treat an old servant like this ... still less an independent trader who has punctually paid for ten years his fees up to 42,276,000 francs (to be compared with the net profits of Monsieur Bernard COLLORAFI of 400,000 francs and his salaries of 4,740,000 francs over the same period). The non-material loss of Bernard COLLORAFI is immense, and can only be compensated by the award of a sum of 2,000,000 francs (two million francs) by way of damages. It would be inequitable to leave to the companies SEBOL, B et O, LES PINS, as well as to Monsieur COLLORAFI the irrecoverable costs which the present proceedings cause them. Consequently, the company MC DONALD'S should be ordered to pay the sum of 100,000 francs to each of the companies as well as to Monsieur Bernard COLLORAFI FOR THESE REASONS Take note, for the appellant companies and Monsieur Bernard COLORAFI, of their agreement that the joinder of the proceedings brought on 30 January 1998 at the request of the company MC DONALD'S FRANCE against the company EURL LES PINS be joined to the proceedings which the Monsieur COLLORAFI brought by summons of 26 June 1997 Declare and rule that the company MC DONALD'S did not perform in good faith its obligations arising from the agreements signed with the companies SEBOL, B & O and Py: 13 Declare and rule that the company MC DONALD'S wrongfully terminated the lease-management agreements, the partial non-payment of the fees being due to its own fault Declare and rule that the companies SEBOL, B & O, and LES PINS were entitled to raise the exceptio non adimpleti contractus, the agreements not having been performed in good faith by the company MC DONALD'S Declare and rule that the company MC DONALD'S is entirely responsible for the partial non-payment of the fees in 1997 and cannot invoke this ground to terminate the agreement Dismiss it outright and simply from its claim for termination. suspend the operation of the termination clause and grant the appellant companies two years to settle their debts on the basis of a reasonable fee Set the bearable annual fee at: • 252,000 francs excl. VAT for the company SEBOL 932,000 francs excl. VAT for the company B & O 934,000 francs excl. VAT for the company LES PINS In the alternative, appoint such Expert as the Court sees fit to designate, to give it the elements enabling it to rule on the reasonable fee In the very alternative, should the Court consider that the termination is established, pronounce the termination at the wrongs and grievances of the company MC DONALD'S Consequently order the company MC DONALD'S to pay: - to the company SEBOL, the sum of (nine million six hundred thousand francs) 9,600,000 francs rounded - to the company B & O, the sum of ... (twenty-two million two hundred thousand francs) 22,200,000 francs rounded - to the company LES PINS, the sum of 13,250,000 francs rounded (thirteen million two hundred and fifty thousand francs), with statutory interest from the day of the judgment Enjoin the company MC DONALD'S or any company which would take over the restaurants, to take over all the staff of the companies SEBOL, B & O and LES PINS, as well as the staff of the GIE SODEVA which handles the financial management of the three restaurants. 10/02/98 17:10 Pg: 14 Declare and rule that the companies SEBOL, and LES PINS managed by Monsieur Bernard COLLORAFI may continue to operate the restaurant businesses until they have received the full compensation for their loss Dismiss the company MC DONALD'S from all its claims, purposes and submissions Order in any event and whatever the solution given to the dispute, the company MC DONALD'S to pay to Monsieur Bernard COLLORAFI the sum of 2,000,000 francs (two million francs) by way of damages for the non-material loss already caused. Order the company MC DONALD'S to pay to each of the companies and to Monsieur Bernard COLLORAFI the sum of under article 700 of the NCPC Rule that the indemnity under this head proportional (fee) of bailiffs provided by article of ministerial officers, if the decision to be given is not voluntarily complied with, thus necessitating recourse to a bailiff for the recovery of the sums due Order the company MC DONALD'S to pay the entire costs. Order the provisional enforcement of the judgment to be given and notably of the payment of the amount of the losses, Monsieur COLLORAFI and the claimant companies being authorised not to leave the premises until they have been compensated. TOTAL PAGE(S) 14

Scroll within the frame to read the full transcription — the complete text remains present on the page.

Other documents — Written submissions

← All documents in the case file