Sweetwater Prevails in Distributor Suit

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A Circuit Court in Alabama has ruled in favor of Sweetwater Brewing Co. in a wrongful termination suit brought by Birmingham Beverage Co., the brewer’s distributor in several Alabama counties. A key factor in the court’s decision was the absence of a written agreement, with the lack of any written terms between the parties cited as warranting dismissal of Birmingham Beverage’s breach of contract claim. The court further found that, because the parties had not filed a territorial agreement with the state, Birmingham Beverage could not meet the requirement of showing the existence of an agreement necessary for any franchise law claim.