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Lawsuit stems from Pabst, MillerCoors partnership disputes

Business partnerships can often allow for companies to expand and carry out operations that they may not have the ability to handle on their own. Of course, these business relationships do not always remain strong, and partnership disputes could result. If the conflicts are great enough, it could lead to litigation in hopes of having the disputes resolved.

Texas residents may be interested in this type of dispute currently taking place between Pabst Brewing Company and MillerCoors. The two brewing companies have been in a partnership since 1999, and the agreement they have is set to run through 2020. MillerCoors is apparently trying to end the partnership despite the potential for the agreement to have two possible extensions. MillerCoors believes that Pabst Brewing Company does not want to provide enough compensation to extend the agreement.

Pabst believes that its company’s existence depends on the current partnership as it fully relies on MillerCoors to produce the amount of beer desired by Pabst, which is 4 to 4.5 million barrels of beer annually. Pabst Brewing Company believes that MillerCoors is breaching the partnership agreement in hopes of lessening competition. As a result, Pabst has filed a lawsuit against MillerCoors to have the situation addressed.

Partnership disputes can cause many problems for companies. As this case shows, businesses could be on the brink of suffering significant damage if agreements are not upheld or successful negotiations for new contracts cannot be reached. If Texas business owners are having to face this type of issue, they may wish to determine what legal options could help them best address their cases.