In the case of Elmhurst Dairy, Inc. v. Bartlett Dairy, Starbucks Corporation, Dean Foods Co., and Tuscan/Lehigh Dairies, Inc., Pryor Cashman partner James S. O’Brien, Jr. and associate Benjamin Akley won dismissal of a lawsuit against client Starbucks Coffee Company, brought by Queens-based milk processor Elmhurst Dairy, Inc. The dispute arose from a contract between Elmhurst and a distribution company named Bartlett Dairy, Inc. that required Bartlett to purchase from Elmhurst all milk that Bartlett sold as a dealer. 

For many years, Bartlett sold milk to Starbucks, which it obtained from Elmhurst. Bartlett also delivered a large variety of paper goods and foodstuffs to the Starbucks stores in the New York region pursuant to a separate distribution contract. Recently, Starbucks stopped purchasing milk from Bartlett and commenced purchasing it from Dean Foods Company, although Starbucks paid Bartlett to deliver that milk to the Starbucks stores under its distribution contract. Elmhurst sued Bartlett for breach of contract, and Starbucks and Dean for tortious interference with contract, alleging that Bartlett’s delivery of the milk that Starbucks purchased from Dean violated the contract.

In the October 12, 2011 decision, the Supreme Court rejected Elmhurst’s interpretation of the contract and adopted each of the arguments put forth by Pryor Cashman, finding that the contract required Bartlett to use Elmhurst as an exclusive supplier only for milk that Bartlett “sells as a dealer” and that Bartlett was not selling Dean milk to Starbucks. The Court dismissed Elmhurst’s claims as to all the defendants and denied Elmhurst’s motions to further amend its Complaint and its motion to renew and reargue. 

To read the case's decision in its entirety, please click here.