The battle over the alleged expropriation of Carat France clients by WPP Group-backed agency KR Media entered its third round on Tuesday.

An appeal court in the French capital overturned KRM's first round victory [WAMN: 12-Jan-05] at which the judge exonerated the Paris agency of charges it enticed Carat clients into its fold in contravention of service agreements

KRM, in which WPP has a 20% stake, was launched in January 2004 by two former Carat executives - Eryck Rebbouh and Bruno Kemoun - who quit the Aegis-owned shop after 'strategic differences' with [then] global chairman/ceo Doug Flynn. Their service contracts prohibited the duo from approaching any Aegis client within twelve months.

But several Carat clients swiftly decided to relocate their business to KRM, prompting Aegis to file a lawsuit for alleged 'poaching' and breach of contract.

The judge found in favour of KRM - a verdict now overturned on grounds that its defence had "serious flaws".

The case continues.

Data sourced from; additional content by WARC staff