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The Franchise Memorandum

Kentucky Federal Court Grants Supplier Summary Judgment Dismissing Dealer's Claims
Posted in Terminations

A Kentucky federal court has granted a motion for summary judgment on a dealer’s claims for breach of contract, unjust enrichment, and tortious interference in Western Kentucky Coca-Cola Bottling Co., Inc. v. Red Bull North Am., Inc., 2010 WL 65029 (W.D. Ky., Jan. 5, 2010).  Western alleged wrongful termination of its distributor agreement against Red Bull, contending that it did not receive an opportunity to cure prior to Red Bull terminating the agreement.  It also alleged that Royal Crown Bottling Company had tortiously interfered with its contract with Red Bull when Royal Crown began distributing Red Bull products.  The court rejected the claim because Western failed to show that the parties had agreed to a cure period.  The court also rejected the claim of tortious interference, because the termination itself was lawful.

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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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