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Citri-Lite Co. v. Cott Beverages

August 27, 2010

THE CITRI-LITE COMPANY, A CALIFORNIA CORPORATION, PLAINTIFF,
v.
COTT BEVERAGES, INC., D/B/A COTT BEVERAGES U.S.A., A FLORIDA CORPORATION, AND DOES 1 THROUGH 25, DEFENDANTS.



The opinion of the court was delivered by: Oliver W. Wanger United States District Judge

SCHEDULING CONFERENCE ORDER

Discovery Cut-Off: 11/22/2010

Non-Dispositive Motion

Filing Deadline: 12/06/2010

Non-Dispositive Motion Hearing Date: 01/07/2011

Deadline: 12/17/2010

Dispositive Motion Filing

I. Date of Scheduling Conference. August 26, 2010

Dispositive Motion Hearing Date: 1/24/11 10:00 Ctrm. 3

Settlement Conference Date: 11/17/10 11:00 Ctrm. 8

Pre-Trial Conference Date: 2/28/11 11:00 Ctrm. 3

Trial Date: 4/12/11 9:00 Ctrm. 3 (CT-7 days)

II. Summary of Pleadings

1. Relief Sought: Monetary damages in an amount according to proof and to be determined according to proof. The Plaintiff has already provided Defendant with a range of damages, as well as the calculation and methodology of the same as part of its expert witness disclosures, and will be providing a supplemental report as to damages.

III. Orders Re Amendments To Pleadings

1. The parties do not anticipate amending the pleadings at this time.

IV. Factual Summary

A. Admitted Facts Which Are Deemed Proven Without Further Proceedings

1. Cott is a Georgia corporation with its principal place of business in Tampa, Florida.

2. Cott produces and distributes non-alcoholic beverages, including carbonated soft drinks, sparkling and flavored mineral waters, energy drinks, juices, juice drinks, ready-to-drink teas, and other non-carbonated beverages.

3. Citri-Lite Corporation, Inc. ("Citri-Lite") is a California corporation with its principal place of business in Grass Valley, California.

4. Citri-Lite was incorporated in 1996 to produce and market "Slim-Lite," a non-carbonated, zero calorie, fruit flavored diet drink designed to help support weight loss.

5. Between 1996 and 2002, Citri-Lite operated at a loss.

6. On December 28, 2003, Citri-Lite and Cott entered into a licensing agreement (the "Agreement" or "Agmt."), which is governed by California law.

7. From October 2003 to November 2007, Jason Nichol was Cott's Vice President for customer and business development and oversaw Cott's business with Wal-Mart and Sam's Club.

8. Gil Woods was Cott's Senior Manager for Sales and Finance responsible for Wal-Mart and Sam's Club during the period in which the Agreement was in effect.

9. Rob Scheiderer was Cott's Director of Sales from May 2004 through January 2005. He was Director of Marketing and Category Management from January 2005 to March 2006.

10. Charles Calise became a Marketing Manager at Cott in December 2003. He was responsible for control or branded beverages, including Slim-Lite.

11. John Scandrett was Cott's Director of Marketing during the term of the Agreement and Charles Calise reported directly to him.

12. Conall Dunne was Cott's Vice President of finance in 2005.

13. Doreen Gormley was Cott's Vice President of Marketing USA in 2005.

14. During the time Cott marketed Slim-Lite, it worked with two Sam's Club buyers: Jim Dragovich and Becky Fields.

15. Dragovich and Fields had discretion to modify the distribution of beverages under their respective categories.

16. Both buyers also had discretion to cancel beverages in their categories.

17. At the outset of the Agreement, Slim-Lite was being sold at approximately 248 Sam's Clubs.

18. In 2004, the first year of the Agreement, sales volume of Slim-Lite increased over its sales in 2003, before the Agreement.

19. In 2003, Citri-Lite spent $705,566.26 on demos.

20. Sam's Club used its own employees to run in-store demos, and charged the supplier approximately $150 per demo in each store.

21. Sam's Club charged the vendor the full retail price for the product actually used in the demo, thus requiring the vendor to buy ...


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