Red Card For Penalty Damages

In 2001, a number of companies, including Sanofi-Aventis were found guilty by the European Commission of participating in cartels and collectively fined €855.22 million.

During the existence of these cartels, Devenish, a Belfast-based supplier of pig and poultry feed, purchased vitamins from Sanofi-Aventis at prices which were artificially inflated as a result of the cartel activity.

Following the European Commission's decision, Devenish raised proceedings in England against Sanofi-Aventis seeking a restitutionary award (a sum of money assessed by reference to the gain which the wrongdoer has made as a result of the wrong) in place of compensatory damages, which compensate the claimant for loss suffered as a result of the wrongdoing. The argument submitted on behalf of Devenish was that compensatory damages would not provide an adequate remedy in the circumstances.