Blue Star seeks dismissal of Red Lobster breach of contract lawsuit
In a recent court filing in Orange County Circuit Court in Orlando, Florida, U.S.A., Blue Star Foods has requested the dismissal of Red Lobster's breach of contract lawsuit.
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Blue Star Foods, based in Miami, Florida, U.S.A., has filed a new response in Orange County Circuit Court in Orlando, Florida, contesting Red Lobster Sourcing's breach of contract lawsuit. In the original complaint filed in July 2023, Red Lobster claimed that Blue Star Foods and John Keeler & Co. failed to deliver contracted crabmeat, resulting in significant revenue loss for the seafood restaurant chain. Red Lobster alleges damages exceeding USD 500,000 (EUR 461,000).
According to Red Lobster's complaint, Blue Star Foods agreed to supply 67,248 pounds of crabmeat between October 2020 and March 2021 via distributor Performance Food Group, fulfilling the contract. However, the subsequent contract spanning from April through September 2021, requiring Blue Star to provide 114,539 pounds of crabmeat, was not fulfilled.
Blue Star attributed its failure to fulfill the contract to the impact of the Covid-19 pandemic, particularly citing the widespread outbreak in Vietnam, a major crabmeat supplier, from April to September 2021. Blue Star formally notified Red Lobster of its inability to fulfill the contract in August 2021, citing a force majeure clause in the agreement.
In its response, Blue Star pointed out Red Lobster's extensive resources and association with General Mills but noted its failure to secure substitute crabmeat despite its partnership with Thai Union Group, a leading global seafood supplier. Thai Union Group had made a substantial investment in Red Lobster in 2016 but was unable to supply crabmeat due to the pandemic.
Blue Star is seeking the dismissal of Red Lobster's claims and reimbursement for attorney's fees and defense costs.