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Berliner Foods Corp. v. Pillsbury Co.

United States District Court for the District of Maryland
633 F. Supp. 557 (1986)

Written by Sean Carroll, JD

Facts

Berliner Foods Corporation (Berliner) (plaintiff) was a distributor for Haagen-Dazs Ice Cream. The owner of Haagen-Dazs had orally promised Berliner that it could distribute for Haagen-Dazs as long as it met certain performance standards. The parties did not discuss or agree to any terms regarding potential assignment of the contractual rights. After the Pillsbury Company (Pillsbury) (defendant) bought Haagen-Dazs, Pillsbury sought to purchase Berliner as well. However, Berliner’s owners eventually sold their company to Dreyer’s Grand Ice Cream (Dreyer’s), a potential competitor of Pillsbury’s. Pillsbury did not consent to Berliner’s assignment of its Haagen-Dazs distribution rights to Dreyer’s and terminated the parties’ distribution relationship. Berliner sued Pillsbury, seeking enjoin the termination.

Rule of Law

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Holding and Reasoning (Motz, J.)

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