Paris High Court makes verdict on control of Cannes Yachting Festival but the litigation continues

Following a two-year legal battle, the Court of Paris has ruled in favour of Fédération des Industries Nautiques’ (FIN) in its case against UK-based Reed regarding the management of Cannes Yachting Festival.

FIN – owner of the Paris and Cannes boat shows – had previously contracted with Reed to organise both shows since 1998, but the contract was terminated in October 2016. In terminating the contract, FIN required relief from a clause in the contract allowing Reed to continue operating the Cannes Yachting Festival until 2041 in the event of cancellation for any reason.

Reed countered by seeking forced application of the contract clause by the courts in November 2016 – ensuring legal battle for control of the show.

This initial ruling from the Court of Paris is not enforceable, which allows Reed to continue managing the festival until the Court of Appeal rules on the matter.

Michel Filzi, CEO of Reed Expositions France, commented, “We are disappointed by this decision of first instance, which rules against one of the key and crucial clauses of the contract signed with FIN. We will obviously appeal against this decision and I remain confident that the Appeals court will acknowledge the validity of the commitments made by FIN and Reed’s legitimate right to continue to manage the Cannes Yachting Festival.”

It is understood that the appeals process could take between 12 and 18 months, thus it is likely Reed will continue to manage Cannes Yachting Festival in 2019.

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