Breach of Contract Lawsuit Advances Against Barcel USA

White, Graham, Buckley & Carr L.L.C. partner Bryan White is currently representing S&K Leimkuehler, Inc. in a federal lawsuit against Barcel USA and Bimbo Bakeries USA, Inc. over Barcel’s termination of a distributorship agreement.

In 2008, S&K and Barcel entered into a distribution agreement that called for S&K to become the exclusive distributor of Barcel products in Missouri and Kansas. S&K spent hundreds of thousands of dollars to establish, build and grow the market and distribution network during this time. In 2018, Barcel ended all sales of its products to S&K and canceled its authorization to distribute products. S&K alleges Barcel and Bimbo then began supplying products to S&K customers themselves.

S&K alleges Barcel breached its distributorship agreement with S&K by violating the terms of the agreement and by terminating the agreement without paying a fair value for the distribution routes and customer relationships.

In August, Barcel removed the case to federal court and filed a motion to dismiss. The WGB&C team prevailed and the case was allowed to proceed on S&K’s claims for breach of contract, breach of implied covenant of good faith and fair dealing, promissory estoppel, unjust enrichment, tortious interference with contract and business expectancies and tortious interference with business relations and business expectancies, misappropriation of trade secrets, malicious trespass and conversion, and civil conspiracy.