Louis Glunz Beer, Inc. v. MARTLET IMPORTING CO. INC.

864 F. Supp. 810, 1994 U.S. Dist. LEXIS 13894, 1994 WL 544304
CourtDistrict Court, N.D. Illinois
DecidedSeptember 28, 1994
Docket93 C 7552
StatusPublished
Cited by4 cases

This text of 864 F. Supp. 810 (Louis Glunz Beer, Inc. v. MARTLET IMPORTING CO. INC.) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Louis Glunz Beer, Inc. v. MARTLET IMPORTING CO. INC., 864 F. Supp. 810, 1994 U.S. Dist. LEXIS 13894, 1994 WL 544304 (N.D. Ill. 1994).

Opinion

MEMORANDUM OPINION AND ORDER

ASPEN, District Judge:

Plaintiffs Louis Glunz Beer, Inc., Waukegan Jack Donelson Sales Co., B.B. Distributors, Inc., Grant Importing & Distributing, Southwest Beer Distributors, Schamberger Brothers, Inc., Radakovich Liquor & Beverage Co., Brownstone Beverage, Co., and Hartman Beverage, Co. bring this six-count complaint against Martlet Importing Co., Inc., Molson Breweries U.S.A., Inc., and Miller Brewing Co., Inc., seeking injunctive relief, compensatory damages, and punitive damages. Presently before the court is defendants’ motion to dismiss plaintiffs’ complaint. 1 For the reasons set forth below, the motion is granted in part and denied in part.

I. Background

Defendant Martlet Importing Company, Inc. (“Martlet”) is a division of defendant Molson Breweries U.S.A., Inc. (“Molson U.S.A.”), which in turn is a subsidiary of defendant Miller Brewing Company, Inc. (“Miller”). Miller owns the rights to market all products produced under the “Molson” brand and trademark in the United States, pursuant to a licensing agreement with the Molson Companies, Ltd. the Canadian company which manufactures Molson products. 2

In 1979, Martlet appointed plaintiff Louis Glunz Beer, Inc. (“Glunz”) as the master distributor for all Molson products in Illinois. In this role, Glunz appointed, with Martlet’s approval, other beer wholesalers to act as sub-distributors for these products. Some of the plaintiffs in this action were among this original group of sub-distributors, while others became sub-distributors in subsequent years. In 1986, Glunz’s role as master distributor was terminated. Instead, Martlet began to deal directly with the former sub-distributors. And although its role as master distributor was eliminated, Glunz retained the right to serve as the exclusive distributor in the territory it had been assigned. 3

*813 Martlet initially supplied the original Chicago-area Molson distributors with three products: Molson Golden, Molson Canadian, and Molson Ale. Over the years, as Molson Companies introduced new Molson products, Martlet requested that plaintiffs add these products to their portfolios. Plaintiffs allege that it was their obligation, under their agreements with defendants, to agree to these requests and to sell all Molson brand beers that Molson wanted to market in their respective territories. In addition, plaintiffs allege that, as new Molson brands were made available for distribution, Martlet was obligated to appoint plaintiffs to distribute the new products in the plaintiffs’ territories.

In January, 1993, Molson Companies announced that it had sold Molson U.S.A. to Miller. This purchase was announced to plaintiffs in a letter from Molson U.S.A. president John Barnett which read in part:

Molson Breweries USA will continue to operate as a stand-alone business—selling, marketing and distributing in the United States, and we plan to continue business as usual with our distributors and customers.

Later that year, in July, 1993, Martlet advised plaintiffs that the Molson brewery planned to introduce a new product called “Molson Ice,” and that this new product would be distributed by plaintiffs along with the other Molson products they already handled. A few months later, Martlet sent registration statements to the Illinois Liquor Control Commission designating plaintiffs to be the authorized distributors of Molson Ice in their respective territories, as Martlet had routinely done in the past when introducing new products in the Chicago area.

In October 1993, however, each plaintiff received from Martlet a document entitled “Settlement of Claims and Release,” which purported to be in response to each plaintiffs offer to terminate its relationship with Mart-let, although none of the plaintiffs had, in fact, made such an offer to Martlet. At this same time, plaintiffs heard rumors that Miller intended to transfer distribution of all Molson products from plaintiffs to Miller’s own distributor network, and that Miller had promised Miller distributors the distribution rights for Molson Ice. Nonetheless, in early November, 1993, upon a request from the Illinois Liquor Control Commission, Martlet resubmitted registration statements for Molson lee, which again designated plaintiffs as the Molson Ice distributors in their respective territories.

On November 4, 1993, counsel for defendants and plaintiffs agreed to meet on November 19,1993. In the interim, on November 12, 1993, counsel for defendants advised counsel for plaintiffs that Miller was appointing Doyle Distributing Co., Inc., a Miller distributor, to distribute Molson Ice in Lake County, Illinois. 4 At the November 19 meeting, however, defendants advised the remaining plaintiffs that they had not yet made a decision regarding Molson Ice distribution for the metro Chicago market.

Less than a month later, on December 15, 1993, three Chicago metro area Miller distributors began, at the direction of defendants, marketing Molson Ice in the geographic area for which Glunz had previously been exclusively responsible. 5 On that same day, Glunz received a letter from Martlet advising it that Glunz’ distributorship for all Molson products was terminated, effective March 31, 1994. The letter offered no reason for the termination.

With respect to the remainder of the plaintiffs, Martlet refrained from providing them with materials for a midwestern promotion campaign, advising one of the plaintiffs that “under the circumstances” plaintiffs would not be allowed to participate. In addition, Martlet failed to offer price support for the first quarter of 1994, and cancelled several price promotions it had planned for Novem *814 ber and December. 6 Furthermore, Oseo Drug Store, one of plaintiffs’ most significant customers, did not schedule any December, 1993 promotions for Molson products, contrary to its usual practice. Martlet is responsible for negotiating with Oseo regarding its participation in promotions. Defendants have not, however, terminated any distributorship other than Glunz’.

Plaintiffs filed the present lawsuit seeking damages and injunctive relief, to prevent defendants from appointing beer wholesalers other than plaintiffs as distributors for Molson Ice in the Illinois territories in which each plaintiff has previously been the exclusive distributor, and to prevent defendants from depriving plaintiffs of their distribution rights for all Molson products.

II. Motion to Dismiss Standard

A motion to dismiss should not be granted unless it “appears beyond doubt that the plaintiff can prove no set of facts in support of his claims which would entitle him to relief.” Conley v. Gibson, 355 U.S. 41, 45-46, 78 S.Ct. 99, 102, 2 L.Ed.2d 80 (1957); see also Beam v. IPCO Corp.,

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Bluebook (online)
864 F. Supp. 810, 1994 U.S. Dist. LEXIS 13894, 1994 WL 544304, Counsel Stack Legal Research, https://law.counselstack.com/opinion/louis-glunz-beer-inc-v-martlet-importing-co-inc-ilnd-1994.