Summary of the facts
The Higher Regional Court of Düsseldorf had to rule on part of the dispute between VW and Prevent. The ruling was based on the following: Two companies belonging to the automotive supplier Prevent demanded a 25% price increase from VW for the seat shells they supplied. VW tried in vain to find out from Prevent what consequences could be expected if the demand was rejected. VW initially agreed to the price demands, but terminated the contractual relationship after a few months. Prevent challenged this in court. The Higher Regional Court of Düsseldorf upheld the ruling of the lower court (Regional Court of Dortmund) and declared one of the terminations to be valid.
Silence can justify termination
According to the Higher Regional Court, the (unjustified) demand for a price increase does not in itself constitute grounds for termination.
However, such a demand can become legally relevant if the contractual partner can expect a delivery stop in the absence of a price adjustment. According to the (highly debatable) decision of the Higher Regional Court, this was the case here. The Higher Regional Court states that it amounts to ‘blackmail’ if the contractual partner is left in the dark about the consequences of rejecting the demand for a price increase. In this respect, the decision follows the approach of the Higher Regional Court of Cologne (judgment of 17 July 2009, 19 U 20/09). According to this, such behaviour destroys the necessary relationship of trust between the parties. Adherence to the contract was unreasonable because VW was urgently dependent on the proper and reliable performance of existing contracts by the contractual partner for the operation of its own business.
Communication is everything
Opinions may well be divided on the grounds for the judgement of the Higher Regional Court of Düsseldorf, also in view of some of the wording used therein. Nevertheless, until further notice (both parties have lodged appeals against the refusal of leave to appeal to the Federal Court of Justice), its assessments must be taken into account: regardless of whether the demand for a contract adjustment is justified or not, communication between the parties should remain transparent and be considered in the overall context of the business relationship.
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