In 2007, the Federlegno association broke its agreement with BolognaFiere for organization of the Saiedue exhibition and decided to transfer Saiedue to the Milan Trade Fair. BolognaFiere brought suit against the association’s arbitrary decision and has now obtained an important ruling with regard to multi-year agreements for the organization of trade fair exhibitions, in addition to significant damages.

BolognaFiere S.p.A., assisted by NCTM Law Firm, has won an important ruling from the Court of Rome with regard to multi-year agreements for the organization of trade fair exhibitions.

The Court of Rome has declared illegitimate the withdrawal by Federazione Italiana delle Industrie del Legno, del Sughero, del Mobile e dell’Arredamento and by Federlegno Arredo S.r.l. (operating company wholly-owned by such association) on the grounds that unilaterality (which characterizes the exercise of the right of withdrawal) clearly conflicts with the contractual terms defined by the parties, which, against an agreement with a total term of ten years, subordinate any interruption of such agreement only to the mutual intention of the parties and to a periodic examination of their interest in continuing their partnership.

The ruling constitutes an important legal precedent that will allow Exhibition Centres to safeguard their agreements against an organizer’s sudden and unilateral decision to free itself of assumed obligations prior to expiration of the agreement in order to transfer an exhibition to a competitor.

Based on a penalty clause provided in the agreement, the Court ordered Federazione Italiana delle Industrie del Legno, del Sughero, del Mobile e dell’Arredamento and Federlegno Arredo S.r.l. to pay BolognaFiere S.p.A. damages amounting to Euro 5,870,640.00 plus interest and costs, for a total exceeding Euro 6 million.