Rycon Speciality Foods, Inc. v. Wellshire Farms, Inc.

2011 WL 1343398 (2011)

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Nature of the Case

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Facts

Rycon (P) sued Wellshire (D) to collect the sum of $229,584.53 on invoices allegedly owed. P contracted with D, a New Jersey firm, to distribute 'hormone free cheese products' produced by P. D failed to pay a series of invoices, and now owed P $229,584.53, and amount owed that P claimed was undisputed. D filed an Answer with Affirmative Defenses and Counterclaims of Breach of Contract, Wrongful Interference with Business Relations, Misrepresentation, and Unjust Enrichment. D asserted that P had breached an oral agreement between the parties. Under the terms of this agreement, D served as the exclusive and master distributor of all of P's hormone free cheese products. D alleged that P had violated this agreement, and committed tortious acts by selling hormone free cheese to others without channeling those sales through D. D claims that the agreement with P for being a master distributor is an oral or implied in fact contract. The discovery wanted P to turn over all its customer lists, banking contracts and relationships with other distributors and all pricing documents, etc. P opposes these far-ranging discovery requests stating that, with the dissolution of their prior business dealings, P and D are now competitors in the hormone-free cheese distribution industry. P contends the demands to prove the oral or implied relationship are too speculative and that P seeks confidential, proprietary trade information relating to financing, marketing, pricing, and distribution of products.