Los Angeles, CA – California appellate justices on Thursday dismissed Carolina Beverage’s $2 million jury win in a contract case accusing Fiji Water of violating their distribution deal by selling directly to retailers. The court found that the agreement wasn’t constructively terminated because Carolina Beverage continued to deliver Fiji products to retailers as per their contract.
In a 30-page opinion certified for partial publication, a three-judge panel of the Second District Court of Appeal reversed a jury verdict that favored plaintiff Carolina Beverage on its claims for breach of contract and breach of implied covenant of good faith and fair dealing against the premium bottled-water manufacturer.
The dispute centered on a five-year distribution deal Fiji struck with Carolina Beverage in 2009, granting the latter exclusive rights to deliver Fiji products within a designated territory. Fiji retained the right to distribute to national account customers within that territory after negotiating terms with Carolina Beverage.