Red Card For Penalty Damages

In 2001, a number of companies, including Sanofi-Aventis were

found guilty by the European Commission of participating in cartels

and collectively fined ?855.22 million.

During the existence of these cartels, Devenish, a Belfast-based

supplier of pig and poultry feed, purchased vitamins from

Sanofi-Aventis at prices which were artificially inflated as a

result of the cartel activity.

Following the European Commission's decision, Devenish

raised proceedings in England against Sanofi-Aventis seeking a

restitutionary award (a sum of money assessed by reference to the

gain which the wrongdoer has made as a result of the wrong) in

place of compensatory damages, which compensate the claimant for

loss suffered as a result of the wrongdoing. The argument submitted

on behalf of Devenish was that compensatory damages would not

provide an adequate remedy in the circumstances.

The sum sought by Devenish was the amount by which the prices it

was charged for vitamins exceeded the price that would...