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Sparkling Juice Company Sues Canning Company for Breach of Contract

Posted on Jan 01, 2016

A Virginia-based juice company has filed a complaint in a U.S. District Court accusing Blues City Brewery, LLC of breach of contract. In the complaint, the plaintiff, 4U2U Brands, LLC, is seeking $75,000 in damages from the defendant. The juice maker alleges that Blues City breached its contract by failing to inform its representatives of technical issues that would later lead to the recall of 20,000 cases of two different flavors of soft drinks.

4U2U Brands, LLC produces soft drinks under the Fruit 66 Epic brand. The product is marketed to schools as a “sparkling juice.” The company relies on third-party canning or “co-packing” operations in order to package its drinks. Blues City is one such third-party canning operation. The two parties began working together in October of 2011.

In its complaint, 4U2U alleges that the two companies terminated their contractual relationship in early 2013. The termination occurred following problems that arose with the September 17 – 19, 2012, production run, in which Blues City allegedly failed to inform 4U2U of technical issues with the product. In addition, Blues City has reportedly failed to account for raw materials that were sent to the Memphis bottling facility for the benefit of 4U2U. The complaint accuses Blues City of losing, destroying, misusing, or wasting these missing raw materials.

4U2U alleges that it has suffered direct and indirect, consequential, and incidental damages and lost profits following the termination of the agreement between the companies. These damages include shipping delays, product shortages, losses of sales, losses of school customers, and other related issues. The plaintiff is asking for compensatory awards and judgment against Blues City for breach of contract, negligence, and misappropriation of raw materials.

To learn more about breach of contract and other business litigation matters, contact a New York breach of contract attorney today at (888) 497-3410.

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