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Court tells Exklusiv Auto: PAY WHAT YOU OWE
Crystal Chan
Mon, Jan 01, 2007
The New Paper

The car agency had hired the advertising agency to handle its product launches and campaigns.

But the car agency did not pay the fees and even denied that it did business with the advertising agency.

So the ad agency took the car dealer to court.

On 16 Oct last year, the High Court gave a summary judgment in the advertising agency's favour.

It ordered former Renault agent Exklusiv Auto Services to pay more than $650,000, including interest, to French advertising giant Publicis.

The ad agency's assignment was between 1 Feb and 31 Mar last year.

Summary judgments are given without full trial when the defendants have no solid defence against the allegations.

PUBLICIS HIRED TO DESIGN

Part of property and motor magnate Peter Kwee's Group Exklusiv, Exklusiv Auto has had the franchise for Renault cars in Singapore since 1981, but sold its dealership to Wearnes Automotive in August last year.

In January 2005, Publicis was hired to design advertisements for Renault cars here, according to court documents obtained by The New Paper.

Then, Exklusiv was preparing to launch the Renault Megane Coupe Cabriolet here.

Publicis claimed Exklusiv owed $66,219, and another $595,780 for other services rendered during that period.

The bills included booking fees that media agencies charge for placing advertisements. Publicis claimed it paid the fees first on its client's behalf.

Publicis also exercised its rights under its agreement with Exklusiv - it charged an interest of 1 per cent each month for the amounts owed.

In its defence, Exklusiv claimed it 'could not recall' if it signed any agreement with Publicis, and wanted Publicis to prove that both companies had a business relationship.

EXKLUSIV DENIALS

Though Group Exklusiv admitted assigning the Renault account to Publicis, it denied owing it any money.

Mr Kwee also filed an affidavit claiming irregularities in Publicis' invoices.

'Some works were billed more than three months after they were allegedly done,' he said in his affidavit.

'Other errors include repeated billing of late-payment interests for the same periods.'

He also said the timing of the invoice showed that Publicis had in fact breached their agreement.

He said Publicis had to submit all invoices within three months from the date that the services were provided.

But in its written submissions, Publicis rebutted Exklusiv's defence as consisting of 'nothing but bare denials'.

Publicis' lawyers wrote: 'More importantly, Exklusiv has provided no evidence in support of its incredulous assertions.

'Exklusiv's conduct of its case also shows its sole intent to delay the payment of outstanding amounts to Publicis.'

The court ruled in in Publicis' favour.

When contacted, both companies declined comment.

Publicis is the fourth largest communications group in the world.

 

 
 
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