01/12/2009 - Mandatory injunction ordered in favour of homeopathic product manufacturer 

On 1st December the Commercial Court in London ordered Guna Spa, the largest Italian homeopathic product manufacturer, to transfer relevant documents to A Nelson & Co ["Nelsons"] to allow them to continue to distribute their homeopathic products in Italy.  The dispute arose after Nelsons terminated their exclusive distribution agreement with Guna.  One of the terms of the agreement was that all relevant registrations, permits or licences should be transferred back to Nelsons on termination.  Guna refused to do so, asserting that the documents sought to be transferred were not those covered by the agreement.  Following ex parte proceedings, Guna entered an appearance in the English courts.  The matter was then adjourned so that the relevant Italian regulatory authority could be consulted.  That consultation led to a decision from the authority which stated that if the transfer as sought was made, Guna would not be able to sell its own products on the Italian market.  The matter then returned to the English court.  

Having heard the parties, the Court determined that there was a serious issue to be tried, that Nelsons would not be properly compensated in damages if an injunction were not ordered, particularly because Nelsons would remain locked-out of the Italian market, which would have a deleterious effect on its goodwill, and that the balance of convenience was in Nelsons' favour.  The Court found that the fact that Nelsons products were available on the grey market in Italy did not impact on its assessment.  Accordingly, a mandatory injunction was granted, ordering Guna to transfer the relevant documents to Nelsons.

Trial in the matter has been fixed for July 2010.