§ 3-13-7 - Damages for improper cancellation, termination, or failure to renew – Arbitration.
SECTION 3-13-7
§ 3-13-7 Damages for impropercancellation, termination, or failure to renew – Arbitration. – (a) Any supplier which without good cause cancels, terminates or fails to renewany agreement, or unlawfully causes a wholesaler to resign from an agreement orunreasonably denies or withholds consent to any assignment, transfer or sale ofbusiness assets or capital stock or other equity securities of a wholesalerwith whom that supplier has an agreement pursuant to § 3-13-5(6), issubject to compensatory damages, equitable relief, or both. Compensatorydamages include reasonable compensation for the value of the wholesaler'sbusiness with relation to the affected brand or brands and the wholesaler'sgoodwill, if any.
(b) The supplier and the wholesaler may, by the terms of anagreement or otherwise, submit the disputes set forth in subsection (a),including the compensation, if any, to be paid for the value of thewholesaler's business, to a neutral arbitrator to be selected by the parties,or if they cannot agree, by the presiding justice of the Rhode Island superiorcourt. The arbitration proceeding shall be held within the state and shall begoverned by chapter 3 of title 10. Arbitration costs shall be paid one-half(1/2) by the wholesaler and one-half (1/2) by the supplier. The award of thearbitrator is final and binding on the parties.
(c) Unless otherwise ordered by the superior court, all ofthe terms and conditions of an agreement between the parties shall remain infull force and effect for a period not to exceed one year during the course ofany arbitration or judicial proceedings brought to enforce any rights under anagreement or under this chapter. No supplier who, pursuant to an agreement witha wholesaler, has designated a sales territory for which the wholesaler isprimarily responsible or in which the wholesaler is required to concentrate itsefforts, shall enter into an agreement with any other wholesaler during thatone year period for the purpose of establishing an additional wholesaler forany of its brands or products. Notwithstanding any pending arbitrationproceeding, a party may petition the superior court in accordance with §3-13-11 to obtain any relief as may be necessary to enforce this section.