Facts

The claimants, consisting of Rodney Schatz, Rodney Schatz Farms Inc., and Raetta Schatz, were grape growers whose business was located in Lodi in District 11. In 1990 they agreed to sell grapes to Heublien Inc. for its Glen Ellen brand. Heublien agreed to pay the general market price for claimant's grapes. Claimants performed under the contract for several years.

Heublein Inc., after several mergers, became Diageo P.L.C. In 2002, the Wine Group, respondent, bought the Glen Ellen brand from Diageo, and Diageo assigned the Schatz/Heublein contract to the Wine Group. The Wine Group, as assignee of the contract, wanted to pay Glen Ellen brand's market price for District 11 Cabernet, which was $150 per ton, not the Diageo Market price for District 11, which was $450 per ton.

CLAIMANTS' CONTENTIONS:
Claimants contended that the Wine Group breached the contract when the Wine Group paid $150 per ton, instead of $450 per ton for 2002.

RESPONDENT'S CONTENTIONS:
Respondent argued that the Wine Group were assignees of the contract, and thus, were required to pay the Glen Ellen market price, not the Diageo's market price.

Damages

Claimants argued they suffered $92,350 in damages. They also sought penalties, interest and attorney fees.

Result

Claimants were awarded $215,120 in arbitration. Specifically, claimants recovered $92,351 in damages, $40,758 in interest, $26,328 in late fees, and $55,683 in attorney fees.