Miller Brewing Co. v. Ed Roleson, Jr., Inc.

223 S.W.3d 806, 365 Ark. 38
CourtSupreme Court of Arkansas
DecidedJanuary 19, 2006
Docket04-1163
StatusPublished
Cited by9 cases

This text of 223 S.W.3d 806 (Miller Brewing Co. v. Ed Roleson, Jr., Inc.) is published on Counsel Stack Legal Research, covering Supreme Court of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Miller Brewing Co. v. Ed Roleson, Jr., Inc., 223 S.W.3d 806, 365 Ark. 38 (Ark. 2006).

Opinions

Jim Gunter, Justice.

Appellant, Miller Brewing Company (“Miller”), appeals a judgment entered by the Crittenden County Circuit Court on a jury’s verdict, awarding Ed Roleson, Jr., Inc. (“Roleson”) $1,600,000.00 in damages for breach of contract, violation of the Arkansas Franchise Practices Act, and civil conspiracy. We affirm the judgment of the circuit court.

Since 1943, Roleson has been, and continues to be, a wholesale beer distributor for Miller. Mike Roleson is the president of Roleson, which is located in Paragould. Under the Distributor Agreement between Roleson and Miller, Miller “agree[d] to sell and [Roleson] agree[d] to buy and market” specifically designated brands of beer in Greene, Poinsett, and Mississippi Counties.

In 1996, Miller developed an internal consolidation plan known as the “White Paper” in which Miller determined that it needed to reduce the number of wholesale distributors in Arkansas for optimum financial performance.1 In this plan, Miller concluded that Roleson would sell its business to White River Beverage Company, Inc. (“White River”), a Coors and Miller distributor located in Newport and owned by George O’Conner. This internal memo was not made known to Mr. Roleson. In 1999, Mr. O’Conner made an offer to purchase Roleson, which Mr. Roleson rejected. At trial, Mr. Roleson presented evidence that in order to remain economically viable in the current beer-distribution market, a distributor must maintain a market share of at least 25% to 30%; at the time of trial, Roleson’s market share was about 24%. A Miller representative also testified at trial that, in order to maintain profitability in the current market, Roleson must grow its business. Otherwise, he thought that Roleson should exit the market.

In an effort to increase its market share in 2001, Roleson attempted to purchase Charles Campbell Distributing Company-(“Campbell”) in Blytheville. Campbell serviced the same territory serviced by Roleson. Campbell’s primary business was distributing Coors products, but it had distribution rights for four brands of beer for which Miller had acquired the rights in 1999. These four brands (the “Acquired Brands”) — Hamm’s, Henry Weinhard’s, Mickey’s, and Old English — made up about 4% of Campbell’s business. While it is clear that Campbell and Roleson never entered into a signed contract, it is not clear exactly how close they came to that goal. There is no dispute that the parties were in negotiations. Campbell sent a letter to Roleson’s accountant dated January 29, 2001, stating that he could not provide certain sales data, in case the sale did not go through, and stating that he would take “six dollars per case for the year 2000 sales.” In April of 2001, Roleson delivered to Campbell an unsigned contract whose terms appear slightly different from those mentioned in Campbell’s letter and an earnest-money check.

In the meantime, Mr. Roleson met with a Miller representative, Jim Young, on February 12, 2001. During that meeting, Mr. Roleson told Mr. Young that he was in negotiations to buy Campbell’s business. Mr. Young allegedly told Mr. Roleson that Roleson would get Campbell’s Acquired Brands, and that he would help Roleson become an approved Coors distributor as well. Mr. Roleson and Roleson’s general manager, Larry Holcomb, both testified that Mr. Young asked them to give him ten days to meet with his counterpart at Coors to help arrange the transfer. The day after his meeting with Mr. Roleson, Mr. Young met with George O’Conner, the owner of White River. Mr. Roleson alleged, and Mr. O’Conner denied, that Mr. Young informed Mr. O’Conner about Roleson’s negotiations with Campbell and instructed Mr. O’Conner to purchase Campbell. In any event, Mr. O’Conner and Mr. Campbell met on February 19, 2001, and entered into an oral agreement for White River to purchase Campbell. This oral agreement was later documented, and White River purchased Campbell. Mr. O’Conner admitted that the February 19, 2001, meeting was the first time he had spoken with Mr. Campbell about buying his business, and testified that it was his president Jan Bratcher’s idea to purchase Campbell. However, Mr. Bratcher testified that he did not think it was a good idea to purchase Campbell, that he did not know where Mr. O’Conner got the idea to purchase Campbell, and that he set up the February meeting several days before February 19th at Mr. O’Conner’s request.

Mr. Roleson testified that Mr. O’Conner called him on February 27, 2001, and offered to purchase Roleson. When Mr. Roleson rejected his offer, Mr. O’Conner stated that he was in a “moral dilemma” because he was going to buy Campbell. Both Mr. O’Conner and Mr. Roleson testified that Mr. Young informally authorized White River’s purchase of Campbell, but they differ as to whether this “authorization” was a request by Mr. Young or merely permission and whether it occurred before or after the February 19th meeting. Mr. O’Conner also told Mr. Roleson that he needed to sell to Mr. O’Conner before “he had a heart attack fighting Miller.”

Finally, Mr. Roleson presented testimony that he attempted to acquire a Miller distributorship in Mountain Home in March of 1999, but was prevented from doing so by Miller. Miller would not approve any Arkansas purchasers, and the Mountain Home distributorship was sold to a Missouri distributor.

Roleson filed a lawsuit against Miller, White River, and George O’Conner.2 By the time the case was tried to the jury, the following claims remained against Miller: breach of contract, violation of the Arkansas Franchise Practices Act, tortious interference with business expectancy, and civil conspiracy. At the close of Roleson’s case, Miller moved for a directed verdict on each of the claims, which was denied by the circuit court. The jury returned a verdict in Miller’s favor on the tortious-interference claim, but found for Roleson on the breach-of-contract claim, the violation of Franchise Act claim, and the civil-conspiracy claim. In response to interrogatories, the jury awarded $1,600,000.00 in damages on each of the three counts to Roleson. The circuit court then entered a judgment, awarding Roleson a total of $1,600,000.00 in damages. The circuit court denied Miller’s subsequent motions for judgment notwithstanding the verdict and, alternatively, for a new trial. Miller appeals all three adverse verdicts; Roleson conditionally cross-appeals the tortiousinterference verdict, conditioned on our reversing all three verdicts in its favor.

We review the trial court’s denial of a motion for directed verdict, denial of motion for judgment notwithstanding the verdict, and denial of new-trial motion for whether there is substantial evidence to support the jury’s verdict. State Auto Prop. & Cas. Ins. Co. v. Swaim, 338 Ark. 49, 991 S.W.2d 555 (1999); Mercantile Bank v. B & H Assoc., Inc., 330 Ark. 315, 954 S.W.2d 226 (1997). Substantial evidence is defined as evidence of sufficient force and character to compel a conclusion one way or the other with reasonable certainty; it must force the mind to pass beyond mere suspicion or conjecture. Swaim, supra. When making this determination, we examine the evidence and all reasonable inferences arising therefrom in the light most favorable to the party on whose behalf judgment was entered. Id. Using this standard, we consider Miller’s points on appeal.

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Miller Brewing Co. v. Ed Roleson, Jr., Inc.
223 S.W.3d 806 (Supreme Court of Arkansas, 2006)

Cite This Page — Counsel Stack

Bluebook (online)
223 S.W.3d 806, 365 Ark. 38, Counsel Stack Legal Research, https://law.counselstack.com/opinion/miller-brewing-co-v-ed-roleson-jr-inc-ark-2006.