Courts / Ireland / Report

Legal row over milk formula company for Chinese market resolved

Date
2015-01-27
Stage
Hearing Or Decision

Summary

In a High Court case involving BM Formula Ltd, a company set up to sell baby milk formula to China, two shareholders, Paschal Bergin and Sean Bradshaw, obtained injunctions against fellow shareholders Patrick Flanagan and Frans de Ru. The injunctions barred Flanagan and de Ru from marketing, dealing in, selling, or promoting the company's formula, and from alienating any interest in the firm. Bergin later posted a €1 million bond to cover potential damages. On 27 January 2015, the parties reached an agreement. The court granted a permanent order restraining the respondents from marketing, dealing in, or selling any baby and infant milk formula known as BMP, and ordered the €1 million bond to be paid out. €350,000 was allocated to each defendant for their shares, €50,000 to a third party, and €250,000 to the solicitors. All prior orders were vacated and the proceedings were struck out with liberty to apply.

Who, what, where, when and why

What: Report matter: Legal row over milk formula company for Chinese market resolved. Procedural stage: hearing_or_decision

When:

Why: The defendant's lawyers denied this and claimed the petitioners set up a cloned company in order to hive off the assets of the firm, which they (the defendants) would not derive any benefit from. CNI source report

Case subjects

Frans de Ru

Respondent

Outcome: struck out

Paschal Bergin

Applicant

Outcome: struck out

Patrick Flanagan

Respondent

Outcome: struck out

Sean Bradshaw

Applicant

Outcome: struck out

Places mentioned

Court Venue
  • High Court
  • Ru. The High Court

Topics

Stage Hearing Or Decision

Read the original CNI report

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