9th Circ. Restores Pepperidge Farm Distributors' Suit

Law360, New York (May 18, 2010, 6:02 PM EDT) -- A federal appeals court has revived two Pepperidge Farm Inc. distributors' state law claim that the company violated their distributorship agreements by controlling their inventory levels, but it has affirmed the dismissal of their fraud and negligent misrepresentation accusations.

A three-judge panel in the U.S Court of Appeals for the Ninth Circuit on Friday reversed and remanded Pepperidge Farm's summary judgment victory on the distributors' Washington Franchise Investment Protection Act claim, concluding that “a genuine dispute of material fact precluding summary judgment” still exists.

Distributors John...
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