Dinn, Hochman & Potter, LLC

Contract disputes may require legal remedy

Companies often must depend upon each other in order to be successful. One company often supplies needed resources to another Ohio company. This relationship may be established through a hand-shake, verbal agreement or even a written contract, and without this relationship, it may not be possible for one of the companies to succeed. Thus, when there are problems that may lead to the dissolution of the relationship, contract disputes may arise.

Such a relationship has existed between Pabst Brewing Company and MillerCoors. For almost twenty years, MillerCoors has provided brewery services to Pabst Brewing. This agreement is in the form of a written contract that features a renewal option.

MillerCoors has been attempting to reign in costs over the past few years as sales have declined. One way they have done this is through the closing of some facilities. As the renewal for their contract with Pabst Brewing Company approached, MillerCoors notified Pabst that they would not be able to honor a contract renewal. Pabst Brewing Company contended that such action would in effect put them out of business and filed suit to force the renewal option to be enforced.

Like many contract disputes, this one could have created a multitude of problems for one or both companies. While this one did require legal action, it has been reported that an agreement has been reached. Ohio companies that find themselves embroiled in potentially devastating contract disputes may also find it necessary to seek legal action in order to resolve the conflict.

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