In August of 2010, the California-based The Wine Group LLC broke off its nearly 23 year relationship with Vancouver-based Marc Anthony Group, Inc.  The two corporations, however, are not parting ways quietly.

Marc Anthony Group made a great deal of money selling The Wine Group wines, including Big House, Cardinal Zin, Inglenook, and Corbett Canyon.  In fact, some media reports indicate that sales of The Wine Group wine generated $9 million dollars of sales for Marc Anthony Group.

Apparently anticipating litigation, The Wine Group made the first move on February 2, 2011 and filed a Complaint for Damages and Declaratory Relief in the U.S. District Court for the Northern District of California.  That complaint requests that the Court find that The Wine Group had the right to terminate its relationship with Marc Anthony Group based upon Marc Anthony Group’s alleged failure to promote The Wine Group’s brands.  Marc Anthony Group responded on February 10, 2011 by filing a breach of contract action against The Wine Group in British Columbia, Canada.

Undoubtedly, The Wine Group will argue before the Canadian Court that it should defer jurisdiction to the U.S. Court, since that was the first-filed action.  Marc Anthony Group will resist that, arguing that the case belongs in Canada.  It will be interesting to watch how this international dispute proceeds.

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