Verdict Amount:
For counterclaim: Mack was awarded $1,265,600: $215,600 for
economic loss, $50,000 for emotional distress; $1,000,000 in
punitive damages.

Case Name:
Pepperidge Farm, Inc. v. W. S. Mack; W. S. Mack vs. Pepperidge
Farm

Case Number:
U.S.D.C. (Southern District) No. 88-1646 T (IEG)

Plaintiffs:
Pepperidge Farm, Inc. - Timothy Dillon, Los Angeles and J. Stacey
Sullivan, San Diego

Defendants:
W. S. Mack - Harris I. Steinberg, San Diego

Facts and Background:
Defendant W. S. Mack, 38, was a nine-year distributor for
Pepperidge Farm. In May 1988, Pepperidge Farm fired Mack,
alleging that his service record was unacceptable because of low
sales and many store complaints.

In 1987, Mack formed a Distributors Association and fought for
commissions on Price Club stores along with other distributor
concerns, including franchise rights. Pepperidge Farm refused to
negotiate with the newly formed Association. Subsequently,
Pepperidge Farm fired Mack and then sued him for breach of
contract five days later. Mack then filed a counterclaim,
alleging various economic damages and emotional distress.

Plaintiff’s Contentions:
Mack was losing sales and was the worst distributor in Southern
California. They also contended that store managers were very
unhappy with his service. Additionally, Pepperidge Farm argued
that Mack’s replacement distributor obtained a 50% increase in
sales.

Defendant’s Contentions:
Pepperidge Farm was retaliating due to his formation of the
Distributors Association; Mack felt that this was Pepperidge
Farm’s attempt to break the Association and make an example of
him. Mack also contended that other distributors performed at a
lesser level but were not terminated. Additionally, Mack
contended that the replacement distributor only obtained a 6%
increase in sales.

Damages:
Economic loss and Intentional Infliction of Emotional Distress