Dairy Farmers of America v. Cacique, Inc. (July 20, 2011, B219840) 2011 WL 2936463 [nonpublished opinion]

Cacique, a cheese producer, abruptly terminated its contract to buy milk from Dairy Farmers of America without giving the requisite notice. DFA sued for breach of contract. Following a bench trial, the trial court awarded DFA $12.5 million in damages. Cacique appealed, arguing that the trial court erroneously eliminated its key defense before trial and used the wrong measure of damages.

GMSR successfully defended the judgment on appeal: The Court of Appeal held that Cacique’s dismissed defense (breach of the implied covenant of good faith and fair dealing) was not viable and affirmed the damages award in its entirety.

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