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MillerCoors, Pabst reach settlement in business litigation

In any type of relationship, disagreements are bound to arise in some form. Business relationships are no different in that aspects, but the ways in which they resolve those disagreements may differ. In particular, some disputes may require business litigation, especially if the conflict could prove damaging to a company.

Florida readers may be interested in a lawsuit between brewing companies MillerCoors and Pabst Brewing that recently came to a settlement. Reports stated that the conflict began over the contract between the two companies, which has been in place since 1999. MillerCoors produced and shipped the majority of Pabst's products, which includes up to about 4.5 million barrels of beer a year. Because of that capacity, MillerCoors is Pabst's only option for producing its products.

The contract is set to expire in 2020, but it included the option for two five-year extensions. MillerCoors apparently did not want to continue with the extensions and believed that the company had sole discretion when it came to determining whether those extensions took place. However, Pabst claims that MillerCoors must act in good faith to find a way to make the extensions work. Pabst filed suit claiming that MillerCoors was simply trying to put the smaller company out of business, but the case recently came to a settlement with undisclosed terms.

As this case shows, business disputes can be so significant that companies could end up on the brink of going out of business if the disputes are not resolved. In hopes of saving their companies or otherwise coming to agreeable terms, Florida business owners may need to consider business litigation. Lawsuits can be difficult to address, but they are sometimes necessary.

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