Vacationland Distributors, LLC v. Fore River Brewing Co., LLC

CourtSuperior Court of Maine
DecidedJune 21, 2022
DocketCUMcv-22-75
StatusUnpublished

This text of Vacationland Distributors, LLC v. Fore River Brewing Co., LLC (Vacationland Distributors, LLC v. Fore River Brewing Co., LLC) is published on Counsel Stack Legal Research, covering Superior Court of Maine primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Vacationland Distributors, LLC v. Fore River Brewing Co., LLC, (Me. Super. Ct. 2022).

Opinion

STATE OF MAINE SUPERIOR COURT CUMBERLAND, ss. CIVIL ACTION DOCKETNO. CV-22-75

) VACATIONLAND DISTRIBUTORS, LLC ) ) Plaintiff ) ) ) v. ) ) ORDER ON PLAINTIFF'S MOTION ) FOR SUMMARY JUDGMENT AND FORE RIVER BREWING COMPANY, LLC ) DEFENDANT'S M.R. CIV. P. 56(±) ) MOTION Defendant ) ) ) )

Before the court is Plaintiff Vacationland Distributors' ("Vacationland") Motion for

Summary Judgment and Defendant Fore River Brewing Company's ("Fore River") Motion to

Continue the Plaintiffs Summary Judgment Motion for further development of the factual

record. For the reasons set forth herein, the Defendant's Maine Rule of Civil Procedure ("M.R.

Civ. P.") 56(±) Motion is GRANTED IN PART. Plaintiffs Summary Judgment Motion is

CONTINUED with respect to Counts I (Good Cause) and III (Reasonable Compensation). The

Court agrees with the Plaintiff that the statute applies, and that Fore River failed to provide

proper notice. Summary judgment is granted in favor of Vacationland on Count IL

FACTUAL BACKGROUND

This case arises out of Fore River's decision to terminate its longstanding, exclusive

distribution arrangement with Vacationland. Vacationland is a boutique distributor of beer and wine, with a focus on fresh, high

quality craft beer. (Plaintiffs Statement of Material Facts ("Pl.' s S.M.F .") ,i 1.) Vacationland has

been licensed by the Maine Bureau of Alcoholic Beverages and Lottery Operations ("BABLO")

since 2014. (Pl.'s S.M.F. ,i 2.) As a craft beer distributor, Vacationland provides a

comprehensive suite of services to its customers that includes marketing and public relations

services, as well as strategic consulting and business planning. (Pl.'s S.M.F. ,i 3.)

Fore River is a craft brewery located in South Portland which, as a producer of 30,000

barrels - or fewer - per year, is defined by statute as a "small brewery" or "small beer

manufacturer." (Pl. 's S.M.F. ,i 4.) Fore River is licensed by BABLO as an in-state manufacturer

of malt liquor. (Pl.'s S.M.F. ,i 4.) Fore River began packaging its beer for retail sale in 2015, and

asked Vacationland to serve as its exclusive distributor of Fore River's beer in Maine. (Pl.'s

S.M.F. ,i 5.) From January 16th, 2016, until January of 2022, Vacationland served as Fore

River's exclusive distributor of its products in Maine. (Pl.'s S.M.F. ,i 15.) The parties' executed a

Distribution Agreement on January 1st, 2017, that was set to expire by its terms on December

31st, 2021. (Def.'s S.M.F.1J 3.)

On January 3rd, 2022, Vacationland received an email from Fore River co-founder John

LeGassey ("LeGassey") attaching a letter dated December 22nd, 2021, and signed by both

LeGassey and Thomas Hanson, Fore River's other co-founder. (Pl.'s S.M.F. ,i 9.) In the attached

letter, Fore River stated that it did not intend to continue its distribution relationship with

Vacationland, and that it intended to go direct in distribution of its products in Maine. (PL 's

S.M.F. ,i 9.) The letter acknowledged that Vacationland had been a valuable distribution partner

to Fore River and largely cited economic reasons for the termination. (Pl.'s S.M.F. ,i 12.)

2 On January 5th, 2022, Vacationland responded to Fore River's letter with its own,

explaining its position that Fore River had failed to comply with the Certificate of Approval

Holder and Maine Wholesale Licensee Agreement Act ("Act"). (Pl.'s S.M.F. ,r 13.) Specifically,

Vacationland claims that Fore River failed to comply with the Act's requirements that they give

90 day notice - to Vacationland and BABLO - prior to termination, and pay reasonable

compensation for the fair market value of the distributor's business. (Pl.'s S.M.F. ,r 13.) On

January 6th, 2022, Fore River notified BABLO that it was appointing itself the exclusive

distributor of its products within the State of Maine. (Pl.'s S.M.F. ,r 14.)

On January 10th, 2022, Fore River sent Vacationland another letter reiterating their

decision to terminate their relationship and stating that the contractual terms between Fore River

and Vacationland superseded the requirements of the Act. (Pl.'s S.M.F. ,r 18.) Since the

termination of their distribution relationship, Fore River has not provided Vacationland with

further compensation. (Pl.'s S.M.F. ,r 19.)

When Fore River announced its intent to terminate the parties' agreement, Vacationland

was not bankrupt or insolvent, its assets had not been assigned for the benefit of any creditors or

similarly disposed of, its license to do business in Maine was in good standing, and neither

Vacationland or its principals had been convicted of or pied no contest to a charge of violating a

law relating to its business that affected its ability to remain in business. (PL 's S.M.F. ,r,r 20-23.)

On February 24th, 2022, Vacationland filed a four count complaint against Fore River,

making multiple claims under the Act. On March 17th, 2022, Vacationland moved for summary

judgment on three of those counts, and on April 20th, 2022, Fore River filed its opposition, as

well as a Motion pursuant to M.R. Civ. P. 56(f) seeking to conduct further discovery before the

3 court decided Vacationland's Motion for Summary Judgment. With Vacationland's reply to both

on May 9th, the parties await this court's decision.

SUMMARY JUDGMENT STANDARD

Summary judgment is warranted when a review of the parties' statements of material fact

and the record evidence to which they refer, considered in the light most favorable to the

nonmoving party, establish that there is no genuine issue of material fact in dispute and that the

moving party is entitled to judgment as a matter of law. M.R. Civ. P. 56(c); Ogden v. Labonville,

2020 ME 133, ,r 10, 242 A.3d 177. A material fact has the potential to influence the outcome of

the case; and a genuine issue of material fact exists if the factfinder must decide between

competing versions of the truth. Lewis v. Concord General Mut. Ins. Co., 2014 ME 34, ,r 10, 87

A.3d 732. If a properly supported motion has been filed, the nonmoving party must demonstrate

supporting record facts, disputed or undisputed, that establish a prima facie case for the claim(s)

in issue. Watt v. Unijirst Corp., 2009 ME 47, ,r 21,969 A.2d 897. In that regard, the court

considers the record facts in the light most favorable to the non-moving party and gives him the

benefit of all favorable inferences that may be drawn from those facts. Levis v. Konitzky, 2016

ME 167, ,r 20, 151 A.3d 20, 28; Curtis v. Porter, 2001 ME 158, ,r 9, 784 A.2d 18. The record is

assessed for sufficiency-not persuasiveness-such that a court can make a factual

determination without speculating. Estate ofSmith v. Cumberland County, 2013 ME 13, ,r 19, 60

A.3d 759.

DISCUSSION

Plaintiff Vacationland seeks sumrnaiy judgment on Counts I-III of their complaint which

raise multiple claims under the Act. Count I claims cancellation without good cause under 28-A

M.R.S. § 1454; Count II alleges failure to provide notice of intent to terminate under 28-A

4 M.R.S. § 1455; Count III claims failure to pay reasonable compensation under 28-A M.R.S. §

1457.

Vacationland maintains that the limited record generates no genuine issue of material fact

as to Counts I and II and asks that the court compel arbitration under Count III.

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