District Court Confirms Interim Arbitral Award Granting Injunctive Relief

Vital Pharmaceuticals, d/b/a VPX Sports v. Pepsico, Inc., No. 20-CIV-62415-RAR (S.D. Fla. Dec. 21, 2020) [click for opinion]

In March 2020, Plaintiff Vital Pharmaceuticals d/b/a VPX Sport (“VPX”) entered into a distribution agreement with Pepsi, Inc. (“Pepsi”), under which Pepsi agreed to distribute VPX’s Bang-branded energy products throughout the United States (the “Agreement”). Less than a year later, VPX terminated the Agreement without cause, claiming that Pepsi was failing to use “commercially reasonable efforts” to distribute VPX products.

Pepsi filed a demand for arbitration with the American Arbitration Association (the “AAA”). Pepsi claimed that VPX was making demands from Pepsi that were not required by the Agreement. Pepsi also maintained that VPX could not terminate without cause without first giving three years’ advance notice, during which time both parties were required to comply with their contractual obligations……

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