The U.S. Court of Appeals for the Second Circuit has affirmed a lower
court’s dismissal of a lawsuit against Kellogg Co. alleging the company
owed a man compensation after it implemented an idea for a portable
breakfast the man had submitted through the company’s online portal
for innovative ideas. Wilson v. Kellogg Co., No. 15-2237 (2nd Cir., order
entered January 13, 2016).

The man submitted an idea for a beverage flavored like cereal milk, but
Kellogg apparently told him it was not interested in pursuing the idea.
The company later obtained a trademark for “Kellogg’s Breakfast to Go”
and began selling a similar product under the name in 2013. The man
sought compensation for the idea, but Kellogg argued that the terms and
conditions the man had agreed to upon submission limited his ability
to recover any money for a successful submission. The Second Circuit
agreed, finding that the terms and conditions served as an express
contract that could not sustain the man’s claims of breach of implied
contract and unjust enrichment.


Issue 590

About The Author

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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