View Case; Cited Cases; Citing Case ; Cited Cases . . Kestenbaum v. Falstaff Brewing Corp., 514 F.2d 690 (5th Cir. Falstaff Brewing Corp. Bloor v. Falstaff Brewing Corp., 601 F.2d 609, 614 (2d Cir. The Court has heeded the Eighth Circuit's request and abstained from ruling on these issues. With respect to its own brands, management was entirely free to exercise its business judgment as to how to maximize profit even if this meant serious loss in volume. Falstaff argues that a trend line projecting the declining volume of Ballantine's sales since 1966, before IFC's purchase, would show an even worse picture. 1983). 1979); Eastern Air Lines, Inc. v. Gulf Oil Corp., 415 F. Supp. 76 Civ. The first chemically confirmed barley beer dates back to the 5th millennium BC in Iran, and was recorded in the written history of ancient Egypt and Mesopotamia and spread throughout the world. Citations are also linked in the body of the Featured Case. United States Court of Appeals for the Eighth Circuit. denied, 424 U.S. 943, 96 S.Ct. 1412, 47 L.Ed.2d 349 (1976). The case was governed by § 2-306 of the Uniform Commercial Code which provides: "Even if Falstaff's financial position had been worse in mid-1975 than it actually was, and even if Falstaff had continued in that state of impecuniosity during the term of the contract, performance of the contract is not excused where the difficulty of performance arises from financial difficulty or economic hardship. Dependahl v. Falstaff Brewing Corp., 594 F.2d 869 (8th Cir. 1975), cert. Bloor (plaintiff) filed suit to recover from Falstaff Brewing Corp. (defendant) for breach of a contract. While that clause clearly required Falstaff to treat the Ballantine brands as well as its own, it does not follow that it required no more. The issue section includes the dispositive legal issue in the case phrased as a question. In the case Bloor v. Falstaff Brewing Corp., 601 F.2d 609, 613–614 (2d Cir. Falstaff appeals from the former ruling, Bloor from the latter. Follow New York Law Journal Copyright © 2020 ALM Media Properties, LLC. Falstaff Brewing Corp., 710 F.2d 1309, 1312 n. 4 (8th Cir. We agree that the subsidiary findings "that Falstaff but not Ballantine had been advertised extensively in Texas and Missouri" and that "[i]n these same areas Falstaff, although a `premium' beer, was sold for extended periods below the price of Ballantine," while literally true, did not warrant the inference drawn from them. In Van Valkenburgh v. Hayden Publishing Co., 30 N.Y.2d 34, 330 N.Y.S.2d 329, 281 N.E.2d 142 (1972), the court held a publisher liable to an author when, in clear bad faith after a contract dispute, he hired another to produce a book very similar to plaintiff's and then promoted it to those who had been buying the latter. Moreover the term "distribution", as used in the brewing industry, does not require distribution by the brewer's own trucks and employees. * Enter a valid Journal (must Under the contract, Falstaff bought the Ballantine brewing labels, trademarks, accounts receivable, distribution systems, and other property except the brewery for $4 million plus a $.50 royalty on each barrel of the Ballantine brands sold between April 1972 and March 1978. In any event the Rheingold sales were only 25.7% of the combined sales in 1974 and 16.8% in 1977. We cannot agree with his statement, 454 F.Supp. DOCKET NO. Falstaff agreed to use its best efforts to maintain a high sales volume and maximize the payout to Bloor, but when sales slipped, Falstaff did little to stop the slide. Another criticism is that the the deduction from the initial computation of lost royalties of $29,193.50 for the period April 1976 to March 1978 as representing royalties lost through the cessation of illegal practices was insufficient; it may well have been but the judge used the best figures he had. 76 Civ. Before confirming, please ensure that you have thoroughly read and verified the judgment. GENRE. 3231 (CLB). Bloor claimed that Falstaff had breached the best-efforts clause and that its default amounted to the substantial discontinuance that would trigger the liquidated-damages clause. Beer is one of the oldest drinks humans have produced. Click on the case name to see the full text of the citing case. 258 (S.D.N.Y.1978), aff'd, 601 F.2d 609 (2d Cir.1979), to support their arguments. Despite the decline in the sale of its own labels as well as Ballantine's, Falstaff, however, made a substantial financial recovery. We affirm in part and reverse in part. briefs keyed to 223 law school casebooks. 1983. Need to make g/f "best effort" in performance (treat beers evenhandedly) Campbell Soup Co. v. Wentz. Cancel anytime. Having correctly concluded that Falstaff had breached its best efforts covenant, the judge was faced with a difficult problem in computing what the royalties on the lost sales would have been. The court was there dealing with a contract whereby defendant agreed to sell and plaintiff to purchase all bread crumbs produced by defendant at a certain factory. We go over the rule itself and the myriads of exceptions and seeming exceptions that apply to this rule. We’re not just a study aid for law students; we’re the study aid for law students. 8. After remand, the parties asked the Court to decide several issues of law concerning *427 the effect of ERISA on the CBS Plan. On June 1, 1969, Investors Funding Corporation (IFC), a real estate conglomerate with no experience in brewing, acquired substantially all the stock of Ballantine for $16,290,000. Plaintiff James Bloor is the Reorganization Trustee of Balco Properties Corporation, formerly named P. Ballantine & Sons ("Ballantine"). Tuesday, October 2, 2012. at 267-72. However, when. Plaintiff was not obliged to show just what steps Falstaff could reasonably have taken to maintain a high volume for Ballantine products. Bloor (P) appealed from dismissal of its breach of contract claim. Falstaff Brewing Corp. In this case, Falstaff had bought Ballantine Ale from Bloor and had agreed to pay Bloor a share on the profits from product sales of Ballantine Ale. 1979), the defendant, Falstaff Brewing Corporation, had bought everything but the actual brewery of the fifth largest brewing company in the United States, Ballantine Brewery. 1978) (performance was not excused although financial difficulty and economic hardship, even to the point of insolvency, made performance difficult or impossible), aff'd, 601 F.2d 609 (2d Cir. On a smaller scale, sales to taverns were facilitated by the salesman's offering a free round for the house of Ballantine if it was available ("retention"), or the customer's choice ("solicitation"). Defendant appealed from a conclusion of the District Court for the Southern District of New York, which held accused liable for breach of a contractual best efforts clause. 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