News Lawsuit
Milkers demand direct payment from DOC Kaas
The lawsuit between dairy processor DOC Kaas and a group of 33 former members of the cooperative continues to take new turns. While DOC Kaas wants to await the appeal by registered letter in December, the lawyer for the milkers now demands that the amount be transferred immediately. There are even threats to file for bankruptcy. "In our view, the latter is an improper means of pressure", the processor responds.
At the beginning of October last year, the court in Assen ruled that dairy processor DOC Kaas must still pay the withheld transaction sum to a group of 63 dairy farmers. After the merger with the dairy company DMK, this amount was intended for the members who would remain members of the dairy cooperative DOC Kaas after the merger, subject to a number of conditions. In 2017, a group of milkers filed a first lawsuit against the dairy, because they were not informed that they were not entitled to the merger bonus if they were to become a member.
In short: in the years after the merger, hundreds of members have sought their happiness elsewhere and turned their backs on DOC Kaas. That's where the shoe pinches. DOC Kaas reports that the merger bonus is intended for dairy farmers who would remain members at least until the end of 2018. The group that started the lawsuit believes that the 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.
Immediate payout required
The court has now therefore determined that DOC Kaas must still pay this amount. Lawyer Dinant in Biesebeek previously announced that the amount involved is €63 million for the 2,5 dairy farmers. The cooperative, on the other hand, already reported in October that it did not agree with the decision of the court in Assen and therefore first wants to in December await a registered appeal. According to the dairy, these former member dairy farmers were indeed informed about the conditions.
This is taking too long for a group of 33 former member dairy farmers, which is why they are now demanding that their share of the transaction amount be paid out immediately. The lawyer is pulling out all the stops and is now even threatening to file for the bankruptcy of DOC Kaas. "As far as we are concerned, this has no chance", the processor responds in a press release. "The claims of the former members are disputed by us on good grounds. Moreover, this cannot lead to an obligation to pay 33 former members immediately. We therefore regard this application as improper means of pressure. A bankruptcy application is therefore no different from abuse of procedural law."
Payment guarantee
Pending the appeal, the dairy processor has already transferred the amount claimed to a third-party account of the plaintiffs' lawyer. "In order to offer the group of 63 former member dairy farmers security of payment, DMK has also offered to provide a guarantee for the amount. This gives the claimants security of payment in the event of a positive decision."
Kimberly Baker
© 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.
