Sierra Wine and Liquor Co. v. Heublein, Inc., a Corporation and United Vintners, Inc., a Corporation

Sierra Wine and Liquor Co. appeals from the district court’s judgments on various claims arising from the termination of Sierra’s wine distributorship agreement with United Vintners, Inc. manufacturers of Italian Swiss Colony and other wines. We affirm.

In March 1965, Pierino Barengo, Sierra’s president, and Jack McGrath, a United representative, orally agreed that Sierra would become the exclusive distributor of Italian Swiss Colony and Petri wines in northwestern Nevada. The oral agreement provided that United would supply Sierra with wine and that Sierra would use its best efforts to promote United’s products. Neither the agreement’s duration nor the conditions under which it could be terminated were specified.

From 1965 to August 1971, Sierra marketed and promoted United Vintners’ products. In August 1968, Heublein, Inc., a Connecticut corporation, acquired control of United’s parent corporation, Allied Grape ‘Growers. On August 10, 1971, United informed Sierra that it was terminating the distributorship arrangement, effective in thirty days. United subsequently replaced Sierra with Wynn Distributing Co., an independent distributor affiliated with neither Heublein nor…