In Brief
A bottling company entered into a bottler's agreement with a soft drink manufacturer to establish a non-alcoholic beverages plant under the manufacturer's trade marks. After termination of the agreement in March 1988, the company sued for damages claiming loss of anticipated profits and costs of establishing the plant. The Supreme Court dismissed the appeal, holding that the breach was not the cause of losses, which stemmed instead from the company's own financial crunch, lack of brand acceptance, and failure to fulfil its obligations. The Court ruled that expectation and reliance losses cannot be claimed simultaneously, and that the company failed to mitigate damages and had effectively waived its rights by conduct.
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