SACRAMENTO — Gallo Winery is suing a supplier of recycled glass and plastic, alleging breach of contract.

E. & J. Gallo Winery and Gallo Glass Company filed a complaint Dec. 18 in U.S. District Court for the Eastern District of California against Strategic Materials Inc., of Houston, alleging the defendant breached the supply agreement contract by failing to meet its annual allocations.

According to the complaint, on June 1, 2011, Gallo entered into a supply agreement wherein Strategic Materials agreed to provide a minimum annual volumes of high-quality cullet that covers a 10-year term up to May 31, 2021. Gallo alleges SMI has not complied with the minimum volume commitments and allocations for its cullet deliveries as agreed in the contract. 

The plaintiffs alleges Strategic Materials has failed to meet its minimum volume commitments as set forth in the agreement and failed to make any internal or other adjustments to meet its agreement obligations at no additional cost to Gallo.

Gallo Winersy seeks trial by jury, compensatory, general, special and consequential damages, attorney fees, costs of suit, pre- and post-judgment interest, and for all other relief the court deems just and proper. They are represented by attorneys Frank M. Pitre and Julie L. Fieber of Cotchett, Pitre & McCarthy, LLP in Burlingame. 

U.S. District Court for the Eastern District of California case number 1:17-cv-01709-AWI-EPG

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U.S. District Court for the Eastern District of California




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