Hicks Thomas LLP has won an appeal on behalf of its client GHP Nail Systems after the Texas 14th Court of Appeals reversed a $2.7 million judgment against the Houston-based cosmetics company in its breach of contract fight against Netherlands-based cosmetics distributor Benelux.
Benelux and GHP entered into an Exclusive Distribution Agreement in 2013, with Benelux agreeing to distribute, market, sell, and advertise GHP’s Haute Polish gel nail polish products in the Netherlands, Belgium, and Luxembourg. Benelux later claimed the nail polish bottles were defective, and after failing to reach a resolution in the dispute, Benelux terminated the agreement in 2015.
GHP later filed suit claiming breach of contract and misappropriation after Benelux began selling its own brand of gel nail polish products.
Benelux countersued for breach of contract and violation of the Texas Deceptive Trade Practices Act, among other claims, and was granted the $2.7 million award in 2019. However, The Court of Appeals has now ruled that the trial evidence was “legally insufficient to support a finding that Benelux suffered any damages,” reversing the judgment in its entirety.
“There were a number of claims where we thought Benelux’s proof had fallen short during the trial, and the Court of Appeals agreed,” said Harrison. “We’re pleased with the outcome for our client".
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