4.1-409 - Remedies.
§ 4.1-409. Remedies.
A. In addition to any other sanctions which the Board is empowered by law toimpose, it may order that any act or practice constituting a violation ofthis chapter be ceased and, where necessary, corrective measures implemented. In addition, in any case in which a winery is found to have attempted oraccomplished an amendment, termination, cancellation, or refusal to continueor renew an agreement without good cause as defined in § 4.1-406, the Boardshall, upon the request of the wholesaler involved, enter an order requiringthat (i) the agreement remain in effect or be reinstated or (ii) the winerypay the wholesaler reasonable compensation for the value of this agreement asdetermined pursuant to subsection B. Reasonable compensation shall include,but is not limited to, the following:
1. The fair market value of the assets used by the wholesaler specificallyfor the purpose of distributing the winery's products;
2. The cost of the wholesaler's inventory of the winery's products calculatedas the sum of the net price paid by the wholesaler for the inventory;
3. The amount of any taxes paid by the wholesaler in connection withpurchasing the inventory;
4. The cost of transporting the inventory from the winery to the wholesaler'swarehouse, plus any handling costs; and
5. The goodwill of the wholesaler's business representing a value over andabove the fair market value of the foregoing tangible assets.
B. In the event the winery and the wholesaler are unable to agree on thereasonable compensation to be paid for the value of the agreement, the mattershall be submitted to a neutral arbitrator to be selected by the parties, orif they cannot agree, a person qualified by experience to appraise the valueof existing businesses shall be appointed arbitrator by the Secretary of theBoard. The decision of the arbitrator shall be rendered within ninety daysfrom the time the matter is submitted to arbitration unless the Board, forgood cause shown, allows for an extension of time not to exceed thirty days,or unless the parties agree to an extension of time. All of the costs of thearbitration shall be paid one-half by the wholesaler and one-half by thewinery. By entering into an agreement, the parties are deemed to have agreedto arbitration as provided in this subsection and, further, that sucharbitration shall be governed by the provisions of Chapter 21 (§ 8.01-577 etseq.) of Title 8.01.
C. In addition to the foregoing remedies, in any case in which a winery isfound to have violated § 4.1-407, the Board may, upon request of thewholesaler involved, order the winery to compensate the wholesaler for anyloss proximately resulting from such violation, including but not limited tolost profits. Such losses shall be determined in the manner provided insubsection B and shall be calculated from the date of the violation by thewinery to the date the winery initiates remedial action pursuant to Boardorder.
(Code 1950, § 4-118.30; 1985, c. 542, § 4-118.50; 1987, c. 246; 1989, c. 10;1993, c. 866.)