Opinion ID: 757350
Heading Depth: 2
Heading Rank: 2

Heading: Termination of Mark VII's Distributorship

Text: Under the terms of the importation agreement between D & G and Labatt, either party could terminate the relationship in the event the other party has a change in ownership pursuant to which 51% or more of the party becomes beneficially owned or controlled by a person or entity other than current shareholders. In late 1995, Labatt's parent company was purchased by Interbrew, Belgium's largest brewer. As a result of this change in ownership, D & G exercised its right to terminate Labatt as its importer. Pursuant to the agreement between Labatt and D & G, Labatt was entitled to a payment of $600,000 from D & G upon termination. Labatt notified Mark VII that the change in Labatt's ownership had resulted in the end of Labatt's agreement with D & G; therefore, Labatt would no longer import Red Stripe and Dragon Stout for distribution by Mark VII. After notice of termination by Labatt to Mark VII, D & G appointed Guinness as its U.S. importer. Instead of selecting Mark VII, Guinness contracted with its established Minnesota distributors to distribute D & G products. D & G has no role in deciding who its importer contracts with to distribute the D & G products. Mark VII seeks redress from Guinness and D & G for the termination of the distributorship agreement. Guinness argues that Mark VII's claim is really against Labatt since Labatt terminated Mark VII and Guinness simply declined to enter into a relationship with Mark VII. D & G argues that the court lacks personal jurisdiction and that it did nothing to Mark VII.