Citri-Lite Co. v. Cott Beverages, Inc.

MEMORANDUM DECISION RE: DEFENDANT’S MOTION FOR SUMMARY JUDGMENT OR, IN THE ALTERNATIVE, PARTIAL SUMMARY JUDGMENT (DOC. 36)

I. INTRODUCTION

Before the court is a motion for summary judgment or, in the alternative, partial summary judgment brought by Defendant Cott Beverages, Inc. (“Cott”). The motion is directed at the claims for breach of contract and breach of the implied covenant of good faith and fair dealing asserted by Plaintiff The Citri-Lite Company (“Citri-Lite”).

In this removed diversity action, CitriLite contends that Cott breached its contractual obligation to use “commercially reasonable efforts” to promote and sell “Slim-Lite,” a beverage that Citri-Lite created. In Cott’s summary judgment motion, Cott argues that, under a proper interpretation of the contract, it satisfied its obligation to use commercially reasonable efforts to promote and sell Slim-Lite. Alternatively, Cott argues that Citri-Lite cannot establish that its purported damages were caused by any breach by Cott, and that Citri-Lite’s damages theories are “legally unsound.” The following background facts are taken from the parties’ submissions in connection with the motion and other documents on file…