PREJUDGMENT INTEREST AWARDED IN BEER BOTTLER’S BATTLE WITH BREWER
Coors Brewing Company sought to terminate its distributor agreement with Finger Lakes Bottling. After Finger Lakes refused a check in the amount calculated by Coors to be the fair market value at termination, Coors initiated an arbitration pursuant to the agreement to have an arbitrator determine the amount. The arbitrator set an amount, but specifically declined to rule on pre-judgment interest, finding it beyond the scope of the parties’ submission, and thus denied Finger Lakes’ request for the interest, though without prejudice to raising the issue in enforcement proceedings. Finger Lakes then filed an application to confirm the award. The court confirmed the award and, exercising its discretion, granted Finger Lakes pre-judgment interest at the weekly average one-year Treasury rate. Finger Lakes Bottling Co., Inc. v. Coors Brewing Co., No. 09-6024 (USDC S.D.N.Y. Oct. 18, 2010).
This post written by John Pitblado.
