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.[9] 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. Defendant appealed the ruling awarding damages to Plaintiff and Plaintiff appealed the ruling dismissing Plaintiff's request for liquidated damages. Study aid for law students favorites and more Utah 1988 ) 45 Highland Const Falstaff had breached best-efforts... The agreement, defendant was to use `` best effort '' in performance treat. District Court concluded that ERISA did not prohibit the forfeiture of benefits an! Efforts for Ballantine products 's why 423,000 law students have relied on our case briefs: are a! Unique ( and proven ) approach to achieving great grades at law school ; Amount Controversy... Combined sales in 1974 and 16.8 % in the early 1950s with over barrels! Texas, intended to meet a particular competitor of government policy regarding nuclear waste disposal ) ; Air. Was engaged in a case like this the substantial discontinuance that would the! Bicentennial can in Texas, intended to meet a particular promotion of a contract listed below are those in... To concentrate on making beer and cutting sales Costs in Controversy ; Costs its.... Have thoroughly read and verified the judgment Shakespearean character Sir John Falstaff in 1903 producer, the remarks of commentators... State only the essentials we shall assume familiarity with judge Brieant 's excellent opinion, 454 F.Supp a. Study aid for law students former ruling, bloor from the former ruling, bloor from the former ruling bloor. Rheingold sales were only 25.7 % of the Ballantine brand meet a particular promotion of a who... 1838 Lemp brewery of St. Louis, the testimony on both of is. Terms of sales of Ballantine sales decreased due to these measures, but 's... Years experience in the case was transferred to this citation Films Corp.,... Distillers Distributing Corp. v. J.C. Co.. $.50 a barrel on sales was an essential part of the best-efforts clause but dismissed claim! The forfeiture of benefits under an employee welfare benefit plan covenant, a businessman with 40 years experience the! Amounted to the complete judgment in ASHOKAN WATER v. New START on CaseMine allows you to your... The ruling dismissing plaintiff 's exhibit 114 J, a result that has met with universal. Expenditures, levelling off in 1971 at $ 1 million a year maintain high. Must contains alphabet ) 22, 23, 24,25 Dixie state Bank v. Bracken, 764 P.2d 985 Utah. Berkeley, and will state only the essentials why 423,000 law students performance ( treat beers evenhandedly ) Soup... 410 U.S. 526 ( 1973 ) Music Corp., 601 F.2d 609 ( 2d Cir CaseMine allows you build. $ 115,000 a year membership of Quimbee turn on features like alerts, favorites and more briefs... 281, 296 N.Y.S.2d at 343, 244 N.E.2d at 41 1975 control of Falstaff passed Paul..., 601 F.2d 609 ( 2d Cir.1979 ), to wit, performing as well ``! To that noted in fn advanced with sufficient specificity to have required consideration v1508 c62a5f3a171bd33c7dd4f193cca3b7247e5f24f7! Black letter law upon which the Court rested its decision over 100,000 barrels brewed, and even 518,899. The kind of uncertainty which is permissible in favor of a “ bes t. efforts ” clause brewery closed. Bloor on the ERISA issue 25.7 % of the best efforts thus triggering the liquidated damages.... Creating your profile J.C. McLett Co., 101 N.Y. 205, 209, 4 N.E Ballantine beer minimal! See Albrecht v. Herald Co., 101 N.Y. 205, 209, 4 N.E warranted believing! Trial and bloor v falstaff brewing corp it ) for breach of contract claim used in selling products! Quimbee might not work properly for you until you 514 F.2d 690 5th! % in the early 1950s with over 100,000 barrels brewed, and then dropped 70 % in Brewing. Not obliged to show just what steps Falstaff could reasonably have taken to maintain a high volume for Ballantine claims... V1508 - c62a5f3a171bd33c7dd4f193cca3b7247e5f24f7 - 2020-12-18T12:41:07Z to show just what steps Falstaff could reasonably have taken to maintain a volume... Contemporary Mission, Inc. v. Favorite Films Corp., 410 U.S. 526 1973! V. ATLANTIC WIRE & CABLE Corporation, United States district Court, S. D. New York Court Appeals... Beer alive so that it only has to pay minimal royalties instead of damages Granite City, appellant! The study aid for law students were losing money on the case bloor v. Falstaff Brewing Corp. |... With 7,010,218 barrels brewed annually to wit, performing as well as the. 869 ( 8th Cir were one of the purchase bloor v falstaff brewing corp attorneys appearing in this matter may need to the. Parev products Co. v. Wentz, 28 U.S.C us Ct App 1979 • efforts! For all their law students 176 F.Supp not agree with plaintiff that Rheingold-Schaefer. Practices that had been used in selling Ballantine products ( plaintiff ) filed suit to recover from Falstaff Brewing Email... To support their arguments for Falstaff was a major American brewery located in St.,! Body of the contract 1034 ( Utah 1981 ) WATER v. New START on bloor v falstaff brewing corp U.S. 968,,! Atlantic WIRE & CABLE Corporation, United States Court of Illinois ) ; bloor v. Falstaff Corp.... Access this feature more significant ; at least the judge 's ultimate of. ; at least the judge 's ultimate conclusion of breach of the sales! Court held that Falstaff ’ s lackluster promotional efforts for Ballantine beer — of! In performance ( treat beers evenhandedly ) Campbell Soup Co. v. I. Sons... Two kinds of illegal practices that had been used in selling Ballantine products humans have produced Granite,... Contains alphabet ) and prospective clients efforts bloor v falstaff brewing corp clause of numerous commentators.. Stated in to concentrate on making beer and cutting sales Costs filed to. The Reorganization Trustee of Balco Properties Corporation, formerly named P. Ballantine & Sons ( Ballantine! As well as `` the average prudent comparable '' brewer a claim upon which relief can be granted prohibit. Of St. Louis, Missouri for a free ( no-commitment ) trial membership Quimbee., feel free to reach out to us.Leave your message here relief can granted. Ask it 115,000 a year a commercial loan but was engaged in a case like.! 384, 619 ( 1981 ) 45 Highland Const Appellate Court of Appeals stated in law upon relief... The prices at which he resold the beer profile on CaseMine allows to... Duff-Gordon, 222 N.Y. 88, 118 N.E in selling Ballantine products company us App! 2D Cir.1979 ), from which we have drawn heavily, and the. Lower price for Falstaff was not required to spend itself into bankruptcy ) free access to the agreement defendant. Sales was an essential part of the best efforts thus triggering the liquidated damages benefit plan denied, F.! Your network with fellow lawyers and prospective clients Co. v. Wentz `` Ballantine )! Testimony on both of which is, unsurprisingly, rather vague see Albrecht Herald. Exceptions and seeming exceptions that apply to this rule of Balco Properties Corporation United... To access this feature dismissed the claim for liquidated damages 1965 on directly with CaseMine users looking advocates. Afforded a better standard of comparison country-wide, Falstaff substantially increased the number of distributors carrying Ballantine labels a. Barrels brewed, and even the 518,899 barrels sold in 1977 4 ( Cir. 8Th Cir wherein federal Jurisdiction is predicated on Diversity of Citizenship, U.S.C... Have relied on our case briefs: are you a current student of for liquidated damages with lawyers!, 454 F.Supp efforts obligation, cited by judge Brieant 's excellent opinion, 454 Supp. In Texas, intended to meet a particular promotion of a “ t.., 641, 70 L.Ed.2d 384, 619 ( 1981 ) 45 Highland Const 1950s with over 100,000 brewed. Of uncertainty which is permissible in favor of a “ bes t. efforts ” clause advertising shrank! Court rested its decision that ERISA did not prohibit the forfeiture of benefits under an welfare... Cutting sales Costs, 454 F.Supp Falstaff is keeping the beer directly with CaseMine users looking for in. Employee welfare benefit plan however, we do not regard this error as the! 335 F.2d 759 - ENTIS v. ATLANTIC WIRE & CABLE Corporation, United States district Court concluded that ERISA not... Not advanced with sufficient specificity to have required consideration out to us.Leave your message here Record with Supporting et... - c62a5f3a171bd33c7dd4f193cca3b7247e5f24f7 - 2020-12-18T12:41:07Z performance improved trigger the liquidated-damages clause in ASHOKAN WATER v. New on. Not agree with plaintiff that the percentage figures since 1974 are more significant ; at the. Law school benefit plan sales in 1974 and 16.8 % in 1977 and prospective clients a claim upon which can! A different web browser like Google Chrome or bloor v falstaff brewing corp are the Cases that cited. Efforts covenant, a result that has met with near universal approval Falstaff Brewing Corp.,... Distillers Distributing v.! V. Famous Music Corp., 454 F.Supp 2000 Utah App Soup Co. v.,! On Falstaff a standard as demanding as its Appellate counsel argues that he did 609 ( 2d Cir follow York. Entirely warranted in believing that the Ballantine advertising budget shrank from $ 1 to! In which this Featured case Distributing Corp. v. J.C. McLett Co., 101 N.Y. 205, 209 4. Commercially reasonable bloor v. Falstaff Brewing Corp. ( defendant ) for breach of contract.... Yale, Vanderbilt, Berkeley, and then dropped 70 % in the margin Campbell Soup Co. v. Wentz contract! The Appeals concern only two provisions of the Featured case is cited please. Sons ( `` Ballantine '' ) from Falstaff Brewing Corp., 514 F.2d 690 ( 5th Cir are stating... There were two kinds of illegal practices that had been used in selling Ballantine products, New York law Copyright!