Protected from subsidiary liability for concluding a distribution agreement

The client was held subsidiary liable for transferring the business to him from a bankrupt debtor by concluding a distribution agreement.

The K&P.Group team analyzed the entire chain of relationships between the creditor, debtor and client, established the legal nature of such a concept as “business transfer”, convinced the court that the conclusion of distribution agreements is the implementation of the principle of freedom of contract and cannot be restricted. As a result, the court dismissed the claims.

The satisfaction of these requirements could lead to a dangerous precedent — subsidiary liability for concluding distribution agreements. This circumstance could complicate international cooperation, which is already problematic at the moment.