Articles Tagged with “breach of contract”

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An interesting breach of contract dispute is brewing between coffee powerhouse Starbucks and a family-owned food company who alleges that the larger corporation has basically put them out of business. Starbucks reportedly decided to stop honoring its contract with Mellace Family Brands, who provided them roasted nut snacks, once customers started complaining about the quality of the nut products. Mellace views that decision to discontinue its products as a breach of contract; one which resulted in the California-based food company going bankrupt.

In an interesting twist to the story, an FDA investigation revealed that the roasted nut snacks were apparently contaminated due to gas leaks in a facility that actually belonged to Starbucks, not Mellace. If true, that would seem to support Mellace’s side of the issue, rather than the coffee giant’s version. Mellace has sued Starbucks for approximately $20 million in damages over the discontinuation of their roasted nut snacks.
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A real estate developer has filed a $106 million breach of contract lawsuit against the California city with which it had a 2006 commercial development agreement. Samuelson & Fetter is alleging that the city violated the terms of the contract which supposedly gave the developer the rights for developing a massive transit village next to the site of an upcoming extension to the Gold Line. The developer claims that the breach of contract stems from the fact that the city and the Gold Line Construction Authority’s plans to put a parking structure on some of the property, originally intended for development by Samuelson & Fetter, would interfere with the developer’s commercial development plans for the area.

The real estate developer filed suit in California court seeking damages in excess of $106 million. That significant amount represents alleged lost damages, lost entitlement value and lost profits. This breach of contract lawsuit could put the Station Square transit development on indefinite hold.
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A contract dispute between technology juggernauts Oracle Corp. and Hewlitt-Packard Co. is heating up in litigation. One HP representative claimed in court that his company was “shocked” at Oracle’s abrupt announcement in 2011 that it would no longer offer software support to HP, allegedly breaking its contractual commitment with the company.

The breach of contract allegation comes after years of the two technology companies reportedly working well together without a written contract. The HP representative claimed that long period of cooperation on joint engineering of Oracle software supporting HP platforms came to an end six months after a mutual agreement was reached regarding HP’s former CEO transition to become co-president of Oracle.
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After a request for an extension was denied, the highly anticipated California trial between Activision and the two men they fired will begin 29 May. Activision, the company that created the wildly successful “Call of Duty” franchise, is being sued by the two men they fired in 2010. The two men are co-creators of the “Call of Duty” video game. They were accused by Activision of breach of contract and stealing intellectual property for personal gain and then fired.

The men sued Activision for wrongful termination. They are asking for over $1 billion in unpaid royalties, bonuses and punitive damages. Activision has counter-sued them for the alleged breach of contract and intellectual property theft.
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Mergers and business acquisitions often involve a host of complicated issues that are not necessarily easily resolved. That may in turn lead to business litigation, such as a breach of contract dispute. Indeed, that appears to be what happened after the recent acquisition of Monarch HealthCare by UnitedHealth Group in November 2011.

Before the acquisition, Monarch had a contract with Blue Shield of California through which it offered services to a little more than 19,000 of Blue Shield’s customers in Orange County. According to Blue Shield, the sale of Monarch to UnitedHealth Group violated a provision of their contract. Blue Shield subsequently notified Monarch that the contract would be terminated effective May 1.
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