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Breach of performance agreement claimed

DUBAI - Middle East Aston Martin, FZCO, Dubai, recently submitted a claim to the civil bench of Dubai Courts Department against Aston Martin Lagonda Ltd, UK claiming a breach of performance of their existing agreement.

According to a Press release, the petition alternatively seeks that British luxury car manufacturer compensate Middle East Aston Martin for damages caused under such breach amounting to almost $50 million.

Middle East Aston Martin (MEAM) is an independent company established under UAE law in 2003 and exclusively owns the distribution rights for products manufactured by Aston Martin Lagonda in the Middle Eastern Region.

On its creation in 2003, MEAM comprehensively cleared the existing financial obligations of Aston Martin Lagonda in the Middle East and invested in the optimisation of the distribution structure resulting in an improvement and increase of the brand’s presence as well as in the sales numbers in a region that is well known for being very attractive for luxury brands.

The company claims to have solved an existing legal dispute with the previous distributor of Aston Martin in the ME.

The engagement and the significant investments were made on the basis of an anticipated cooperation period of 10 years between Aston Martin Lagonda and Middle East Aston Martin that meant an initial five-year period with a renewal option of equal duration.

Towards the end of the initial five-year period, Aston Martin Lagonda then also rejected the renewal of the distribution rights with MEAM when the initial period of the agreement was coming to a close.

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