TITLE XIII
ALCOHOLIC BEVERAGES

CHAPTER 180
BEVERAGE DISTRIBUTOR AGREEMENTS

Section 180:5

    180:5 Compensation. –
I. Any beverage manufacturer, brew pub, or beverage vendor which amends, cancels, terminates, or refuses to continue or renew any agreement, or causes a wholesale distributor to resign from an agreement, without good cause in violation of RSA 180:3, or unreasonably withholds consent to any assignment, transfer, or sale of all or any part of a wholesale distributor's business or assets, shall pay the wholesale distributor reasonable compensation for the value of the wholesaler distributor's business or assets that have been lost or diminished as a result of the amendment, cancellation, termination, refusal to deal or renew, or withholding of consent. Reasonable compensation for the value of the wholesale distributor's business or assets that are so lost or diminished shall include the fair market value of the distribution rights that will be so lost or diminished. If a wholesale distributor has been paid a consideration by a successor wholesaler with respect to the sale, transfer, or assignment of the wholesale distributor's interest in the sale or distribution of a brand or brands, the beverage manufacturer, brew pub, or beverage vendor shall be liable only for compensatory damages in an amount reflecting the difference in the amount already paid to the wholesale distributor and the fair market value of the wholesale distributor's beverage business and assets, excluding its tangible assets. If, following an amendment, cancellation, termination, refusal to deal, or forced resignation in violation of RSA 180:3, or an unreasonable withholding of consent to an assignment, transfer, or sale of all or any part of the wholesale distributor business or assets in violation of RSA 180:2, a wholesale distributor remains in business as a wholesale distributor of the affected brand or brands by permanent injunction or otherwise, the wholesale distributor shall be entitled to no compensation under this section, but may recover actual damages, if any, as provided in RSA 180:6.
II. In the event that the beverage manufacturer, brew pub, or beverage vendor and the wholesale distributor are unable to agree on the reasonable compensation to be paid under paragraph I, the matter may, by agreement of the parties, be submitted to a neutral arbitrator to be selected by the parties; or, if having agreed to arbitration the parties cannot agree on an arbitrator, the arbitrator shall be selected in accordance with RSA 542:4.

Source. 1990, 255:1. 1996, 289:16. 2003, 231:46, 47, eff. July 1, 2003.