Facts

Hans Jürg Vogel distributed clothing, particularly raincoats and ski jackets, manufactured under license by Ebreichsdorfer Industrie GmbH (formerly Boehm) according to the models of its parent company Val. Mehler AG, in Switzerland. In 1974, Ebreichsdorfer Industrie GmbH terminated the license contract for the "Valmeline" brand and offered Vogel to distribute its own products under the new "Viennaline" brand. Vogel refused to abandon the distribution of Val. Mehler AG products and claimed a goodwill indemnity.

Considerations

The Federal Tribunal considered that Swiss law was applicable, as Vogel's activity took place in Switzerland. According to Art. 418u para. 1 CO, the agent may claim an indemnity when the principal or its legal successor derives substantial benefits from the business relationship with the clientele acquired by the agent, even after the termination of the contract. This indemnity is not deferred remuneration for the agent's services during the contract term, but compensation for a commercial value that the principal can continue to exploit.

The Court ruled that Vogel had effectively substantially expanded the clientele of Ebreichsdorfer Industrie GmbH. However, the fact that Vogel continued to distribute Val. Mehler AG…