In Western Kentucky Coca-Cola Bottling Co. v. Red Bull North America, Inc., 2008 WL 2548095 (W.D. Ky. June 20, 2008), a terminated beverage distributor sued for breach of contract and unjust enrichment, alleging wrongful termination of its distribution agreement. The distributor alleged that the agreement, which had no set term, was to “never be terminated without prior written communication [by the manufacturer] of the grounds [for termination]…and the opportunity to cure those grounds.” Although Kentucky law holds that agreements with no definite term may be terminated by either party at will, the United States District Court for the Western District of Kentucky denied Red Bull’s motion to dismiss. In doing so, the court relied on a 1978 Kentucky Court of Appeals case, which had held that “reasonable notification” was required to terminate an ongoing, oral distribution contract. The court found that a fact question existed as to whether Red Bull’s notice to the distributor was reasonable with respect to providing the distributor the opportunity to cure the breach.
Terminations