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The Franchise Memorandum

Eighth Circuit Rejects Distributor's Wrongful Termination Claims
Posted in Terminations

In Minnesota Deli Provisions, Inc. v. Boar’s Head Provisions Co., 2010 U.S. App. LEXIS 10821 (8th Cir. June 11, 2009), the Eighth Circuit affirmed a grant of summary judgment dismissing plaintiff Minnesota Deli’s claims arising out of the termination of its distributorship for Boar’s Head deli products. In doing so, the court rejected Minnesota Deli’s argument that its distributorship was not terminable at will. The court held that statements by Boar’s Head executives allegedly telling Minnesota Deli it would “never be touched” as long as it grew its business satisfactorily and that Boar’s Head “would never do anything” to Minnesota Deli were not “clear and definitive” promises to create a legally enforceable durational term. The court also affirmed the lower court’s ruling that Minnesota Deli had no contractual right to sell its accounts to other Boar’s Head distributors upon termination of its distributorship.

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The Franchise Memorandum is a collection of postings on summaries of recent legal developments of interest to franchisors brought to you by Lathrop GPM LLP. 

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