Texas Jury Awards Distributor $14 Million in Breach of Contract Lawsuit

Austin Oil and Gas Attorney, Gregory D. Jordan

Austin Oil and Gas Attorney, Gregory D. Jordan

Austin, TX (Law Firm Newswire) October 4, 2017 – A Texas jury awarded almost $14 million to a distributor in a breach of contract claim, but also charged the distributor about $3.4 million for unjust enrichment.

Distributor Bunnett & Co. accused Natural Soda LLC, a manufacturer of baking soda, and Enirgi Group Corp., its parent company, of breaching a regional distribution contract. Bunnett claimed that Natural Soda violated the agreement, under which Bunnett sold the product to supplement the diet of dairy cows and Natural Soda agreed not to make direct sales to customers in a 15-state territory. Bunnett claimed Natural Soda breached the contract and then tried to poach customers, but Natural Soda said it ended the agreement in December 2015 after Bunnett breached it. When Bunnett filed suit against Natural Soda in December 2015, a temporary restraining order was granted enforcing the exclusivity clause of the contract.

“Whether an exclusivity clause is enforceable can be a complicated question that depends on facts in addition to the language of the contract,” notes Gregory D. Jordan, an Austin Texas business litigation attorney with The Law Offices of Gregory D. Jordan. “If you are considering entering into or seeking to enforce a contract with an exclusivity clause, find an attorney familiar with how they operate,” suggests Jordan.

After an eight-day trial, the Travis County jury sided for the most part with Bunnett, deciding that Natural Soda was in breach of the agreement, engaged in tortious interference with Bunnett’s customer relationships, and acted maliciously. The jury awarded $5 million in damages for lost profits, $927,000 in damages for tortious interference and $3 million in punitive damages.

The jury also found that after the contract was terminated, Natural Soda performed work for Bunnett that it was not paid for, so is determined that Bunnett was unjustly enriched by $3.36 million.

To learn more, visit http://www.theaustintriallawyer.com/

Law Offices of Gregory D. Jordan
5608 Parkcrest Drive, Suite 310
Austin, Texas 78731
Call: 512-419-0684

View Larger Map

  • Texas telecommunications company sues Comcast claiming tortious interference
    A small Texas telecommunications company has filed a lawsuit against cable giant Comcast, alleging tortious interference with contract. In the lawsuit, Anthony Luna claims Comcast dug up and destroyed cables owned by his company, Telecom Cable. Luna alleges that Comcast workers cut cables and disrupted service to his customers in the Houston area. The complaint […]
  • Texas appellate court rules against owner of royalty interest in fraudulent inducement lawsuit
    A Texas appellate court held that the owner of a royalty interest could not claim fraudulent inducement with regard to its settlement with a Shell Oil affiliate that operated the oil and gas property. In 2014, a Texas state court jury found that the Syrian American Oil Corp. (Samoco) was fraudulently induced into entering a […]
  • Eight ex-employees of Texas sanitation company claim racial discrimination
    Eight African American employees of a Texas sanitation company have filed a lawsuit claiming discrimination and retaliation. Dantrell Patterson, Lamonte Young, Demetrius Patterson, Tadarious Dixon, Keithdrick Patterson, Jarvis Hill, Jermaine Bell and Derrick Robert filed the lawsuit against Sanitation Solutions Inc. in the Marshall Division of the Eastern District of Texas on April 20. The […]