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Contracts Keyed to Templin
North Shore Bottling Co. v. C. Schmidt & Sons, Inc.
Citation:
292 N.Y.S.2d 86, 22 N.Y.2d 171 (N.Y. 1968)Facts
In October 1960, North Shore Bottling Company entered into an oral agreement with C. Schmidt & Sons to become the exclusive wholesale distributor of Schmidt beer in Queens County, New York “for as long as Schmidt sold beer in the New York metropolitan area.” Prior to this agreement, there was practically no sale of Schmidt beer in Queens County. At Schmidt’s request and in reliance on their promises regarding the exclusive distributorship, North Shore invested substantial resources to develop the market for Schmidt beer, including soliciting customers, distributing advertising, and granting price concessions. These efforts resulted in approximately a 100% increase in sales of Schmidt beer within a year. In June 1962, Schmidt terminated the relationship and designated Midway Beverage Corporation as its new distributor. North Shore sued for breach of contract seeking $200,000 in damages and also alleged conspiracy to defraud in a separate cause of action seeking $500,000.
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