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Brooklyn Bagel Boys, Inc. v. Earthgrains Refrigerated Dough Products, Inc.

United States Court of Appeals for the Seventh Circuit
212 F.3d 373 (2000)


Facts

Earthgrains Refrigerated Dough Products, Inc. (Earthgrains) (defendant) manufactured, distributed, and sold dough products. In 1994, Earthgrains developed a proprietary formula for bagels. Earthgrains contracted with Brooklyn Bagel Boys, Inc. (Brooklyn) (plaintiff) to manufacture bagels under the Earthgrains name. Brooklyn’s business was manufacturing bagels for third parties to be sold under the third parties’ names. Earthgrains and Brooklyn entered into a contractual packaging agreement on March 25, 1996. The contract provided that Brooklyn would manufacture the ordered amount of bagels at a set price, but did not require Earthgrains to purchase a specific quantity of bagels. Earthgrains and Brooklyn agreed that Earthgrains would submit a non-binding forecast of orders every three months. Brooklyn and Earthgrains performed under this agreement until Earthgrains decided to begin manufacturing its own bagels in 1997. Brooklyn sued Earthgrains for breach of contract. Earthgrains moved for summary judgment. The district court granted summary judgment to Earthgrains, and Brooklyn appealed to the United States Court of Appeals for the Seventh Circuit.

Rule of Law

Issue

Holding and Reasoning (Williams, J.)

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