Reuter’s Reports: “Kraft Loses Bid to Keep Distributing Starbucks”


It is very difficult to obtain an injunction when monetary damages can compensate for a business’s losses. A recent article in Reuter’s regarding Kraft Food’s bid to require Starbucks to allow it to continue to distribute Star Buck’s coffee illustrates the point. Reuter’s reports:

A federal judge rejected Kraft Foods’ bid to force Starbucks Corp to keep using Kraft to distribute packaged coffee to supermarkets in North America and Europe, a decision that allows Starbucks to move ahead with a new partner.
In a ruling from the bench, U.S. District Judge Cathy Seibel in White Plains, New York, on Friday also noted that Starbucks could end up owing Kraft “a boatload of money” if an arbitrator decided the coffee chain breached a 1998 agreement with Kraft.
Kraft, North America’s largest packaged food maker, contended that it would suffer “irreparable harm” if Starbucks, the world’s largest coffee chain, went through with its plan to move distribution to privately held Acosta Inc on March 1.
“Kraft has not established it will suffer irreparable harm,” the judge said after hearing arguments from both sides.

To read the full article click here.

Lubin Austermuehle represents businesses and individuals in make-or-break business litigation. Our Illinois business emergency lawyers have a special practice focusing on cases that cannot wait — cases in which immediate action is required to prevent imminent harm to the client. This frequently means requesting a declaratory judgment and preliminary injunction, as was the case here, or a temporary restraining order. Businesses of all sizes and purposes can end up in such a situation, which is why our Aurora business law attorneys represent individuals and businesses from small, closely held concerns to major corporations. Based in Chicago and Oak Brook, our Chicago business attorneys represent clients throughout Illinois, Iowa, Wisconsin, Michigan and all of the United States. To get help right away with a business emergency or learn more about how we can help, contact our Chicago business law attorneys through the Internet or call us toll-free at 630-333-0333.

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