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American Bottling Company files breach of contract claim

On Behalf of | Apr 25, 2019 | Commercial Litigation

There may be a variety of scenarios in which companies in Louisiana and elsewhere may feel it is best to cut ties with business partners. However, should the other party feel that the decision to end the arrangement is in violation of the original contract, it may wish to take steps to protect its interests. The American Bottling Company has recently filed a lawsuit accusing BodyArmor Sports Nutrition of breach of contract.

The lawsuit reportedly stems from a recent incident in which ABC asserts BodyArmor decided to bring a sudden end a 10-year business deal. Representatives from ABC say they were informed that the reason behind the decision involved concerns over a recent merger agreement between ABC’s holding company and another party. The company reportedly claims that BA used the news of the merger as an excuse to end the arrangement so it could sell off a portion of its business to a larger entity.

ABC states that the sudden end to the deal was in violation of the original agreement and it is seeking restitution through litigation. However, BA asserts that the company was well within its rights to end the business relationship early. The company states that a clause existed within the original contract stating that should the other company undergo any changes in ownership, BA would have the right to terminate the arrangement.

Due to the complex nature of many business contracts, breach of contract disputes can be highly-contestable matters. Those who encounter similar disputes may find it beneficial to obtain legal counsel early on for guidance on the best course of action to take to protect their business interests. An attorney can provide a client in Louisiana with advice on all the available options and assist in forming a strategy to protect his or her interests through the proper channels.