Anheuser-Busch International Inc and another (Respondents) v Commonwealth Brewery Ltd (Appellant) (Bahamas)

Hearing listed

Case summary
Appeal

Case summary

Case ID

JCPC/2024/0092

Jurisdiction

Bahamas

Parties

Appellant(s)

Commonwealth Brewery Ltd

Respondent(s)

Anheuser-Busch International Inc., Cerveceria Nacional Dominicana SA

Issue

Did the Court of Appeal err in finding that the termination notice period given by the Respondents was reasonable?

Facts

The Appellant is Commonwealth Brewery Limited (CBL), a subsidiary of the Dutch company Heineken. Following a 2018 merger, CBL became the successor of Burns House Limited (BHL) in these proceedings. The Respondents, Anheuser-Busch International Inc (ABI) and Cerveceria Nacional Dominicana SA (CND), are sister companies and subsidiaries of the multinational drinks company AB InBev NV. In or around 1975, ABI and BHL entered into an oral distribution agreement whereby BHL had the exclusive right to distribute certain AB InBev products in The Bahamas. The agreement was never put in writing but the parties performed it for over 40 years. In 2015, the Respondents sought to terminate the agreement and gave BHL approximately 3.5 months’ notice. Notwithstanding the notice period, the Respondents ceased to supply products to BHL within one month of that notice. BHL threatened to commence legal proceedings against the Respondents. In response, the Respondents commenced proceedings against BHL seeking damages for breach of contract. BHL counterclaimed alleging (among other things) that the Respondents’ purported termination was wrongful because they had failed to give reasonable notice. BHL sought a fixed sum by way of damages and over USD 2 million for loss of profits. The Trial Judge held that the notice given was unreasonable and that a reasonable notice period would have been 15 months. The Court of Appeal allowed the Respondents’ appeal and held that the notice period was reasonable. CBL (as BHL’s successor) now appeals to His Majesty’s Privy Council.