DOC Kaas appeals against millions claim

The court in Assen has ruled that DOC Kaas must still pay out the withheld merger bonus to a group of 63 dairy farmers. DOC Kaas announces that they will appeal against the case that has been going on for years.

At the end of 2017, a collective dairy farmers filed a lawsuit against DOC Kaas, because they were not informed that they were not entitled to the merger bonus if they became a member. This bonus results from the merger between DOC Kaas and DMK that had taken place the previous year. Part of that merger was that the takeover sum of about €20 million would flow back to the members through the milk money.

In the years after the merger, hundreds of members have sought their fortune elsewhere and turned their backs on DOC Kaas. The shoe pinches at this point. DOC Kaas says that the merger bonus is intended for dairy farmers who would remain members at least until the end of 2018. The group of dairy farmers believes that departing members are also entitled to the bonus. They say they were not aware of the added provision indicating that the merger bonus is passed on to departing members. DOC Kaas therefore withheld the merger bonus from the last milk payment.

Claim of €2,5 million
The court has now ruled that DOC Kaas must still pay out the withheld merger bonus, as was also the case at the beginning of September in the interlocutory judgment was decided. Lawyer Dinant in Biesebeek, who represents the litigant dairy farmers, says that DOC Kaas must repay the 63 dairy farmers €2,5 million. The judgment is provisionally enforceable, which means that the litigant members can already claim this amount, despite the appeal by DOC Kaas.

DOC Kaas does not agree with the ruling and expects to be proven right in an appeal. Chairman of the board Arjan Schimmel says that the members have indeed been correctly and timely informed about the principles and conditions regarding the merger bonus. He is of the opinion that DOC Kaas has sufficient evidence to prove the contrary to the Court of Appeal on appeal.

Wouter Job

Wouter Baan is editor-in-chief of Boerenbusiness. He also focuses on dairy, pig and meat markets. He also follows (business) developments within agribusiness and interviews CEOs and policymakers.

w.baan@boerenbusiness. Nl

© DCA Market Intelligence. This market information is subject to copyright. It is not permitted to reproduce, distribute, disseminate or make the content available to third parties for compensation, in any form, without the express written permission of DCA Market Intelligence.