New York Pepsi-Cola Distributors Ass'n v. Pepsico, Inc.
Court: Appellate Division of the Supreme Court of the State of New York; June 24, 1997; New York; State Appellate Court
Judgment from the Supreme Court of New York County, entered on July 2, 1996, dismissed the plaintiffs' action for failure to state a cause of action, with costs awarded. The court ruled that the plaintiffs, independent wholesale distributors of soft drinks, are not third-party beneficiaries of contracts between their independent bottler and the defendants, its licensor. It established that a sublicensee cannot claim third-party beneficiary status regarding contracts between a licensor and direct licensee, citing relevant case law. The court further noted that any benefits to the plaintiffs from those contracts are merely incidental. The court dismissed claims regarding the defendants' failure to prevent other distributors from infringing on the plaintiffs' exclusive territories, stating there was no breach of fiduciary duty due to the absence of a contract or an intimate relationship between the parties. Additionally, claims for tortious interference with contract were rejected because no contracts were breached. Claims for tortious interference with prospective business relations also failed due to a lack of allegations of wrongful conduct. The court denied leave to replead, as no proposed new pleading was presented with supporting evidence. The decision was affirmed unanimously by Justices Ellerin, Wallach, Nardelli, Rubin, and Mazzarelli.