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Bad Ass Coffee v. Royal Aloha International LLC

Bad Ass Coffee v. Royal Aloha International LLC, 2020 UT App 122 (Pohlman, J.)

Business Litigation

Several entities entered into an operating agreement to form Royal Aloha, a company that would internationally distribute coffee. The entities’ relationship soured, and they eventually sued each other. The district court upheld the validity of the operating agreement, held that one entity had breached the contract, and awarded damages. The Utah Court of Appeals affirmed, holding:

  • An entity did not challenge several factual findings supporting the district court’s ultimate determination that its owner reasonably relied on another’s apparent authority to enter into an operating agreement. 
  • The damages computation in the initial disclosures was not inadequate under Utah R. Civ. P. 26. The entity identified the specific type of damages (lost capital contribution consisting of in-kind services) and named the operating agreement as the basis for the damages. 
  • The district court did not err in allowing an entity to proceed to trial on a damages theory based on the value of its capital contribution. 
  • The parties did not adequately address the district court’s attorney fees ruling or ruling denying a motion for judgment notwithstanding the verdict.

Read the full court opinion

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