Opinion ID: 492085
Heading Depth: 1
Heading Rank: 4

Heading: exclusive trade area

Text: 28 Cambee's alleges that Doughboy breached its agreement to allow Cambee's to operate as the exclusive distributor of Doughboy products in the Sioux Falls area. The district court construed this claim as the same cause of action stated in the wrongful termination count. We cannot entirely agree. Although somewhat related, the two claims are patently distinct; Doughboy was obligated to give reasonable notice of termination before it could be allowed to permit other distributors to operate in any exclusive area of Cambee's. It could not terminate Cambee's exclusive rights simply by doing business with Cambee's competitors. Thus, until Cambee's received reasonable notice of termination, it was entitled to exercise and enforce such exclusive rights as it had in the Sioux Falls area. 29 Doughboy vigorously denies that it breached the exclusive area term of its agreement with Cambee's, and the evidence it presents in defense of that claim is substantial. This dispute, however, we need not presently decide; rather it is appropriate for the matter to be addressed in the first instance by the trial court. Because that court did not fully consider the exclusive area claim on its own merits independently of the termination claim, on remand that claim may be the subject of further proceedings.