Facts

Brad Stark's family had been affiliated with defendant Sunkist Growers Inc. for 75 years. Plaintiff Stark Packaging Corp. boxed and shipped oranges, tangerines, grapefruits and other produce for grower members of Sunkist at packinghouses in the Central Valley under a licensing agreement.

Plaintiff filed a complaint, for breach of fiduciary duty, interference with prospective economic advantage, breach of contract, rescission, accounting and declaratory relief. Ultimately the case went to the jury on the breach of contract cause of action. Other causes of action were dismissed by the court in response to motions for summary adjudication and some causes of action were abandoned by the plaintiff before the case was submitted to the jury.

PLAINTIFF'S CONTENTIONS:
Defendant retaliated against plaintiff causing its five packinghouses to lose money and close. Defendant engaged in unfair business practices by favoring other packers over plaintiff. It also cancelled orders it had placed with plaintiff. At one point, defendant even convinced a major grower not to work with plaintiff. Defendant therefore violated its policy of marketing all packers' products equally.

The retaliation was triggered because Stark had informed defendant's management that other packinghouses were manipulating the marketing equity policy to gain an advantage. Defendant did not want to offend these "cheating" packinghouses, and therefore, failed to take any action. Defendant had concerns that it would lose those packers, which would negatively affect profits. After Stark asserted his allegations to Sunkist corporate officials, defendant retaliated. Defendant thereafter diverted fruit requests from plaintiff's packinghouses to other shippers.

DEFENDANT'S CONTENTIONS:
Sunkist disputed the claims of misconduct and retaliation. Sunkist contended that the plaintiff was treated fairly and Sunkist did not violate its marketing equity policy. Plaintiff's problems were not sunkist's fault. Stark Packing went out of business because Brad Stark and his family took funds out of the company for their personal use and Brad Stark made bad investments on behalf of Stark Packing which resulted in a loss of millions of dollars.

Damages

Plaintiff withdrew from Sunkist and marketed its growers' fruit through another marketing organization. A year later plaintiff went out of business. Plaintiff contended that Sunkist's actions cut in half the number of cartons plaintiff shipped, from 6,000,000 cartons of citrus for defendant in 1997 to 3,000,000 only three years later. Plaintiff sought $60 million dollars.

Result

Plaintiff was awarded $13.5 million. Defendant was awarded $138,000 in its cross-complaint against plaintiff for money due on an equipment lease.

Length

six weeks