CENTRAL ISLIP, N.Y. (Legal Newsline) – Kellogg Co. distributors in the New York market allege that the company failed to honor its business commitments.
Glenn Aaronson, MQ Distribution LLC, Mr. Snack Hat LLC, et al. filed a complaint on Oct. 9 in the U.S. District Court for the Eastern District of New York against Kellogg Co. alleging breach of fiduciary duty, constructive fraud and other counts.
According to the complaint, the plaintiffs each acquired for valuable consideration distribution routes located within the New York metropolitan market for purposes of delivering snack products manufactured by defendant Kellogg.
However, the plaintiffs allege Kellogg had a secret plan in place as early as 2014 to abandon its direct store delivery distribution model in favor of returning to a centralized warehouse model. The plaintiffs allege they have been damaged by the "unwarranted cancellation" of their subdistributorships.
The plaintiffs hold Kellogg Co. responsible because the defendant allegedly took improper advance of the relationship with the plaintiffs at the plaintiffs' expense.
The plaintiffs request a trial by jury and seek award for punitive damages, imposing a constructive trust on sums by which the defendant allegedly has been enriched, and grant such other relief as the court may seem just and proper. They are represented by Christopher J. Gray and Michael J. Giarrusso of Law Offices of Christopher J. Gray, PC in New York.
U.S. District Court for the Eastern District of New York case number 2:18-cv-05616-SJF-GRB