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Business litigation involving hazelnut processor and large co-op

On Behalf of | Jun 24, 2020 | Business Litigation

An Oregon hazelnut processor is asking for compensation and damages from a large co-op over what it claims is a breach of contract. The Hazelnut Growers of Oregon cooperative is named in a lawsuit filed by Pacific Hazelnut Farms for failing to honor several specific terms in their agreement. Business litigation is appropriate when a company suffers financial harm after another party fails to adhere to the particulars of a contract.


The plaintiff states the co-op did not honor terms of the agreement that pertained to packaging, supply and licensing. It believes that because the co-op is a significantly bigger company that the hazelnut processor, the co-op is acting in ways that take advantage of the difference. The smaller company is also suing for $1 million in damages for misappropriation of trade secrets. The total amount sought in the lawsuit amounts to $2.4 million.

The co-op allegedly attempted to learn the proprietary information from various processors, including recipes and more. They are now using that information to market identical products. The hazelnut cooperative has also failed to pay the processor a payment for unmet revenues, a provision included in their agreement.

When attempts to resolve an issue out of court fail, it may be appropriate to move forward with business litigation. A lawsuit allows an Oregon company to pursue recovery of losses associated with breach of contract or mishandling of trade secrets. Working with an attorney experienced in business and commercial law can help a company learn of the legal options available and move forward with the best course of action.