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Keywords

contractlawsuitbreach of contractdamagestrialmotionjury trial
contractlawsuitbreach of contractdamagestrialmotionjury trial

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Mexico Bakery, Inc.; U.S. v.

Facts

In November 2005, TTI entered into a Distribution Agreement with Sara Lee to distribute its products in Rio Rancho, New Mexico. After two years, Sara Lee terminated the Agreement, leading TTI to file a lawsuit for breach of contract and other claims. Sara Lee counterclaimed for breach of contract, seeking damages. TTI filed a jury demand, which Sara Lee moved to strike based on a jury waiver provision in the Distribution Agreement. TTI argued that it did not knowingly and voluntarily waive its right to a jury trial.

In November 2005, TTI entered into a Distribution Agreement with Sara Lee to distribute its products in Rio Rancho, New Mexico. After two years, Sara Lee terminated the Agreement, leading TTI to file a lawsuit for breach of contract and other claims. Sara Lee counterclaimed for breach of contract, seeking damages. TTI filed a jury demand, which Sara Lee moved to strike based on a jury waiver provision in the Distribution Agreement. TTI argued that it did not knowingly and voluntarily waive its right to a jury trial.

Issue

Did TTI knowingly and voluntarily waive its right to a jury trial as stipulated in the Distribution Agreement?

Did TTI knowingly and voluntarily waive its right to a jury trial as stipulated in the Distribution Agreement?

Rule

The burden is on the party seeking to enforce a waiver of the fundamental jury right to demonstrate that the right was knowingly and voluntarily waived. Courts consider factors such as conspicuousness of the waiver clause, disparity in bargaining power, the experience of the party opposing the waiver, and the opportunity to negotiate contract terms.

The burden is on the party seeking to enforce a waiver of the fundamental jury right to demonstrate that the right was knowingly and voluntarily waived. Courts consider factors such as conspicuousness of the waiver clause, disparity in bargaining power, the experience of the party opposing the waiver, and the opportunity to negotiate contract terms.

Analysis

The court analyzed whether TTI's waiver of the jury trial was knowing and voluntary by examining the conspicuousness of the waiver clause, the bargaining power between TTI and Sara Lee, and Sanchez's business experience. The court found that while there was a disparity in bargaining power, it did not reach the level of being 'gross.' Additionally, Sanchez's lack of formal business education and experience, along with the circumstances surrounding the signing of the Distribution Agreement, led the court to conclude that TTI did not knowingly and voluntarily waive its right to a jury trial.

The court analyzed whether TTI's waiver of the jury trial was knowing and voluntary by examining the conspicuousness of the waiver clause, the bargaining power between TTI and Sara Lee, and Sanchez's business experience. The court found that while there was a disparity in bargaining power, it did not reach the level of being 'gross.' Additionally, Sanchez's lack of formal business education and experience, along with the circumstances surrounding the signing of the Distribution Agreement, led the court to conclude that TTI did not knowingly and voluntarily waive its right to a jury trial.

Conclusion

The court denied Sara Lee's motion to strike TTI's jury demand, concluding that Sara Lee failed to prove that TTI had knowingly and voluntarily waived its right to a jury trial.

The court denied Sara Lee's motion to strike TTI's jury demand, concluding that Sara Lee failed to prove that TTI had knowingly and voluntarily waived its right to a jury trial.

Who won?

Too Tall, Inc. prevailed in the case as the court ruled in favor of TTI, allowing the jury demand to stand.

Too Tall, Inc. prevailed in the case as the court ruled in favor of TTI, allowing the jury demand to stand.

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