Court of Appeal finds against DOC Kaas U.A.

PRESS RELEASE

DOC Kaas U.A. is disappointed with the decision of the Leeuwarden Court of Appeal in appeal proceedings that the cooperative filed against an earlier ruling of the District Court of Assen. In the appeal proceedings, the Court of Appeal in Leeuwarden today found against the cooperative.

The decision concerns a legal action that a group of 63 dairy farmers filed in early 2017 with regard to matters including the payment of the transaction sum for the merger of DOC Kaas and DMK. The former members concerned did not receive this transaction sum, due to their cancellation of their membership of the cooperative. Prior to the merger, conditions for the payment of the transaction sum were drawn up, including the provision that this sum would only be paid out to the remaining members. The former members concerned contested the validity of these conditions and take the view that they are entitled to the transaction sum, even if they do not comply with the conditions.

In interim injunction proceedings in April 2017, the provisional relief section found in favour of DOC Kaas U.A. in all parts of the case. However, the District Court of Assen handed down a different decision on 7 October 2020 with regard to two of the four points, i.e. the transaction sum and the deduction of 1 monthly cent of the milk price in December 2016. DOC Kaas U.A. then appealed against this decision.

The DOC Kaas cooperative is disappointed with the decision of the Leeuwarden Court of Appeal. Board Chairman Guus Mensink says: ‘We remain convinced that we did indeed inform our members of the principles and conditions for the payment of the transaction sum correctly and in time. We will study the contents of the decision in more detail and discuss potential follow-up steps.’

About DOC Kaas U.A.

DOC Kaas U.A. is a Dutch dairy cooperative formed in 1895. Cheese and other dairy products are made from the milk produced by the member dairy farmers and are sold worldwide. Our activities are based on the principle of sustainable business operations taking account of people, animals and the environment.

End of press release