April 27th, 2017
Jacked Up, LLC v. Sara Lee Corp.
Opinion Date: April 25, 2017
Judge: Edward C. Prado
Areas of Law: Business Law, Contracts
Jacked Up and Sara Lee signed a licensing agreement whereby Sara Lee would produce and sell energy drinks developed by Jacked Up. Sara Lee sold its beverage division to the J.M. Smucker Company and Smucker decided not to assume Sara Lee's licensing agreement. After Sara Lee formally terminated the agreement, Jacked Up filed suit against Sara Lee, alleging breach of contract, breach of fiduciary duty, fraud, and fraudulent inducement. Jacked Up joined claims against Smucker for, among other things, tortious interference with a contract and trade secret misappropriation. The district court granted summary judgment against Jacked Up on all claims. In regard to claims against Sara Lee, the court reversed the district court's conclusion that Section 14(b) of the agreement unambiguously permitted Sara Lee to terminate the licensing agreement at will; there are genuine disputes about whether Sara Lee breached the contract and whether Jacked Up performed under the contract, and thus the court reversed the grant of summary judgment in favor of Sara Lee on Jacked Up's breach of contract claim; the court affirmed as to the breach of fiduciary claim because Jacked Up failed to point to sufficient evidence that would support finding a fiduciary relationship between the parties; the court reversed as to the fraud and fraudulent inducement claim because, at the very least, there is a genuine dispute of fact as to whether Jacked Up's reliance on Sara Lee's representations was justifiable. In regard to claims against Smucker, the court affirmed summary judgment in favor of Smucker on the tortious interference claim; affirmed as to the trade secret misappropriation claim; affirmed the denial of Jacked Up's Rule 56(d) motion for a continuance; and the court left it to the district court to determine whether Jacked Up has put forth sufficient evidence of damages.
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