Gair Gallo Eberhard today won a $4.8 million arbitration award on behalf of a private-equity-owned food distributor based in the southeastern United States. The distributor had managed deliveries to some 700 franchises of one of the most popular fast-food restaurant chains in the country under a contract with a captive supply chain services manager for the franchisor. The management company purported to terminate the distributor’s contracts for convenience, a devastating blow for the distributor whose main customer was the chain. After an evidentiary hearing in March, GGE persuaded the Atlanta-based AAA panel that the parties had intentionally eliminated any termination for convenience right in an amendment to the distribution agreement. The panel found a breach of contract and awarded damages representing close to two years of lost profits. The case was tried by GGE founders Chris Gair and Jeff Eberhard.
Menu