Anthony-Thomas Candy Company v. Nestle USA, Inc.

CourtDistrict Court, S.D. Ohio
DecidedAugust 21, 2025
Docket2:24-cv-03938
StatusUnknown

This text of Anthony-Thomas Candy Company v. Nestle USA, Inc. (Anthony-Thomas Candy Company v. Nestle USA, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Anthony-Thomas Candy Company v. Nestle USA, Inc., (S.D. Ohio 2025).

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF OHIO EASTERN DIVISION

ANTHONY-THOMAS CANDY CO.,

Plaintiff, Case No. 2:24-cv-3938 v. JUDGE EDMUND A. SARGUS, JR. Magistrate Judge Kimberly A. Jolson

NESTLÉ USA, INC.,

Defendant. OPINION AND ORDER This matter is before the Court on Defendant Nestlé USA, Inc.’s Motion for Judgment on the Pleadings. (ECF No. 21.) Plaintiff Anthony-Thomas Candy Co. opposes the Motion. (ECF No. 29.) Nestlé replied in support of its Motion. (ECF No. 34.) For the reasons below, the Motion is GRANTED IN PART and DENIED IN PART. (ECF No. 21.) BACKGROUND This case arises from the breakdown in a business relationship between Anthony-Thomas and Nestlé. The parties’ relationship began in May 2021 after Anthony-Thomas agreed to produce and package food products for Nestlé. (ECF No. 3, ¶ 4.) Under the Agreement, titled “Contract Manufacturing and Packaging Agreement,” Anthony-Thomas was responsible for procuring the materials necessary to produce goods for Nestlé. (Id.; ECF No. 17, PageID 154, § 2.1.) In exchange, Nestlé promised to compensate Anthony-Thomas. (See ECF No. 17.) To obtain a product shipment, the Agreement directed Nestlé to submit Purchase Orders to Anthony-Thomas. (ECF No. 3, ¶ 8; ECF No. 17, PageID 156, § 3.5.) Those Orders conveyed where the product was to be delivered and the date that it needed to be shipped. (Id.) The Agreement contemplated forecasts to help Anthony-Thomas anticipate Nestlé’s future Purchase Orders. Nestlé promised to provide Anthony-Thomas with a 52-week production forecast. (ECF No. 3, ¶¶ 6–7; ECF No. 17, PageID 155, § 3.2.) The forecasts were to be provided monthly and include firm estimates of Nestlé’s production needs for four weeks in advance. (Id.)

After the four-week commitment, Nestlé agreed to provide an estimate of its remaining production needs for the year. (Id.) Anthony-Thomas asserts that Nestlé never provided a full annual production forecast or an accurate four-week firm production commitment. (ECF No. 3, ¶ 9.) Nestlé only forecasted its production needs for six months at a time, and then frequently changed its forecasts throughout the contractual relationship, says Anthony-Thomas. (Id. ¶¶ 11–12 (alleging that Nestlé changed the six-month forecast for July 2023 through January 2024 four times).) In addition, Nestlé did not place any Purchase Orders. (Id. ¶ 10.) The parties, however, disagree about whether the Agreement required Nestlé to do so. The Agreement did not have a “volume commitment” and stated that “Nestlé shall have no obligation, whether under this

Agreement or otherwise, to order or purchase any Product from [Anthony-Thomas].” (ECF No. 17, PageID 155, § 3.3.) But the Agreement did include a firm production commitment, which Anthony-Thomas asserts required Nestlé to place the Purchase Orders included in its four-week firm production forecast. (Id. § 3.2.) Based on the forecasts provided by Nestlé, Anthony-Thomas purchased more than $130,000 worth of materials in anticipation of producing and packaging goods for Nestlé under the Agreement. (ECF No. 3, ¶ 17.) In July 2023, Nestlé gave notice to terminate the Agreement arguing that Anthony-Thomas failed “to deliver product in a timely manner in accordance with POs [Purchase Orders] . . . for 3 consecutive months.” (Id. ¶ 18; ECF No. 17, PageID 167, § 14.2.5.) Again, Anthony-Thomas disagrees and alleges it never received any Purchase Orders and that Nestlé wrongfully terminated the contract. (Id. ¶ 19.) Section 14.2 of the Agreement outlined the process to end the parties’ contractual relationship. Nestlé reserved the right “to immediately terminate” if Anthony-Thomas “failed to

perform or comply with any term or condition,” and “failed to cure its nonperformance or noncompliance within 30 days after its receipt of written notice.” (ECF No. 17, PageID 166, § 14.2.1.) But if Anthony-Thomas “fail[ed] to timely deliver Product in accordance with POs [Purchase Orders] pursuant to Section 13.4 of the Agreement for 3 consecutive months,” Nestlé could immediately terminate the contract without giving Anthony-Thomas notice and an opportunity to cure. (Id. PageID 166–67, § 14.2.5.) Nestlé terminated the Agreement immediately under § 14.2.5, taking the position that Anthony-Thomas failed to timely deliver product and thus did not offer Anthony-Thomas an opportunity to cure. (See ECF No. 3, ¶ 18.) And Nestlé failed to compensate Anthony-Thomas for the materials purchased in anticipation of fulfilling its obligations under the Agreement. (Id. ¶ 22.)

Anthony-Thomas asserts that it never failed to deliver product in a timely manner, because Nestlé never placed any Purchase Orders. (See ECF No. 3.) Nestlé, not Anthony-Thomas, breached the Agreement, it says. (Id.) So Anthony-Thomas filed this lawsuit in the Franklin County Court of Common Pleas asserting three state-law causes of action for breach of contract (Count 1), fraudulent inducement (Count 2), and unjust enrichment (Count 3). (Id.) Nestlé removed the case to this Court. (See ECF No. 1.) Since the parties are citizens of different states, and the amount-in controversy exceeds $75,000, Nestlé asserted that diversity jurisdiction is proper. (ECF No. 3, ¶¶ 1–2 (describing Anthony-Thomas as an Ohio corporation with a principal place of business in Ohio); ECF No. 1, ¶ 6 (describing Nestlé as a Delaware corporation with a principal place of business in Virginia).); see also 28 U.S.C. § 1332(a). Nestlé now moves for judgment on the pleadings, and the Motion is ripe for review. (ECF No. 21.)

STANDARD OF REVIEW Federal Rule of Civil Procedure 12(c) provides that a party may move for judgment on the pleadings after the pleadings are closed but early enough not to delay trial. Fed. R. Civ. P. 12(c). “A motion for judgment on the pleadings under Federal Rule of Civil Procedure 12(c) generally follows the same rules as a motion to dismiss the complaint under Rule 12(b)(6).” Bates v. Green Farms Condo. Ass’n, 958 F.3d 470, 480 (6th Cir. 2020) (citation omitted). To state a claim upon which relief may be granted, plaintiffs must satisfy the pleading requirements set forth under Rule 8(a). Rule 8(a)(2) requires a pleading to contain a “short and plain statement of the claim showing that the pleader is entitled to relief.” Fed. R. Civ. P. 8(a)(2). To survive a motion to dismiss, the well-pleaded factual allegations must “plausibly give rise to

an entitlement for relief.” Bates, 958 F.3d at 480 (quoting Ashcroft v. Iqbal, 556 U.S. 662, 679 (2009)). “A claim has facial plausibility when the plaintiff pleads factual content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged.” Iqbal, 556 U.S. at 678. “For purposes of a motion for judgment on the pleadings, all well-pleaded material allegations of the pleadings of the opposing party must be taken as true, and the motion may be granted only if the moving party is nevertheless clearly entitled to judgment.” Tucker v. Middleburg-Legacy Place, LLC, 539 F.3d 545, 549 (6th Cir. 2008) (internal citation omitted).

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Klaxon Co. v. Stentor Electric Manufacturing Co.
313 U.S. 487 (Supreme Court, 1941)
Hanna v. Plumer
380 U.S. 460 (Supreme Court, 1965)
Ashcroft v. Iqbal
556 U.S. 662 (Supreme Court, 2009)
Tucker v. Middleburg-Legacy Place, LLC
539 F.3d 545 (Sixth Circuit, 2008)
Duncan v. Theratx, Inc.
775 A.2d 1019 (Supreme Court of Delaware, 2001)
Nemec v. Shrader
991 A.2d 1120 (Supreme Court of Delaware, 2010)
Blgh Holdings LLC v. Enxco Lfg Holding, LLC
41 A.3d 410 (Supreme Court of Delaware, 2012)
Jeffrey Norman v. David Elkin
860 F.3d 111 (Third Circuit, 2017)
Todd Bates v. Green Farms Condominium Ass'n
958 F.3d 470 (Sixth Circuit, 2020)
Jarvis v. Ashland Oil, Inc.
478 N.E.2d 786 (Ohio Supreme Court, 1985)
Weyerhaeuser Co. v. Domtar Corp.
61 F. Supp. 3d 445 (D. Delaware, 2014)
New London Tobacco Market v. Ky. Fuel Corp.
44 F. 4th 393 (Sixth Circuit, 2022)
Robert Greer v. Strange Honey Farm
114 F.4th 605 (Sixth Circuit, 2024)

Cite This Page — Counsel Stack

Bluebook (online)
Anthony-Thomas Candy Company v. Nestle USA, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/anthony-thomas-candy-company-v-nestle-usa-inc-ohsd-2025.