A company that makes and sells a proprietary blend of purported “wellness” herbs as part of its line of gourmet coffee, teas and hot chocolates has sued one of its former independent business owners/operators (IBOs) alleging, among other matters, disparagement, breach of a confidential performance agreement and non-competition clause, and the misappropriation of trade secrets. SereniGy Global, Inc. v. Mendoza, No. 13-08243CA04 (Fla. Cir. Ct., 11th Cir., Dade Cty., filed March 6, 2013).

According to the complaint, the company relies on a network of IBOs to
market and advertise its products and signed a performance agreement with
the defendant to do so in March 2012. By October, the company allegedly
“received information that Defendant had been making slanderous, derogatory
and disparaging remarks about Plaintiff and its CEO in violation” of the
agreement, was “divulging confidential information to a third-party,” and
“had been disloyal and involved in moral turpitude by advising another IBO
to attempt to extort $300,000.00 from the Plaintiff’s CEO.” After the company
terminated the defendant’s IBO status, he allegedly “continued to violate the
non-compete provisions of the terminated Performance Agreement.” The
company claims that despite sending a cease and desist letter to the defendant
in February 2013, he “continues to intentionally and maliciously engage
in the non-compete and anti-raiding activities in violation of the Performance
Agreement.”

Alleging breach of contract, breach of fiduciary duty, misappropriation of
trade secrets, restraint of trade, tortious interference with contracts, and
commercial disparagement, the company seeks in excess of $7 million in
compensatory damages and $21 million in punitive damages. It claims to
have created a “massive consumer demand” worldwide for its beverage and
nutraceutical products containing ganoderma, “known for thousands of
years to be associated with wellness, energy, longevity and balance.” The
substance is apparently derived from mushrooms.

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For decades, manufacturers, distributors and retailers at every link in the food chain have come to Shook, Hardy & Bacon to partner with a legal team that understands the issues they face in today's evolving food production industry. Shook attorneys work with some of the world's largest food, beverage and agribusiness companies to establish preventative measures, conduct internal audits, develop public relations strategies, and advance tort reform initiatives.

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