Conrad O’Brien Wins Motion to Dismiss for Multi-Million Dollar Breach of Contract Suit Against Lorillard Tobacco Company

3/19/2010

On March 8, 2010, the firm won a motion to dismiss for Lorillard Tobacco Company against D & M Sales Company in D & M Sales, Inc. v. Lorillard Tobacco, Co., No. 09-2644, Eastern District of Pennsylvania.  In his opinion, Judge Padova dismissed with prejudice D & M Sales’ breach of contract claim against Lorillard finding that the parties’ distributorship contract was a contract of indefinite duration and therefore terminable at-will under Pennsylvania’s Uniform Commercial Code.  Applying Section 2-309(b) of the UCC, the Court determined that the performance standards within the parties’ agreement were not the only grounds for termination, and therefore the parties’ contract was terminable at-will.  Lorillard was represented in this case by Howard Klein and Marie DeForest.

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