In a significant ruling, a California jury has sided with Smashmallow, the owner of a snackable marshmallow production company, over a disputed agreement. They ruled unanimously in favor of Smashmallow, against a Dutch-based manufacturing system designer, handing down a $21 million award on Friday.
The central contention of the case revolved around the Dutch company’s failure to deliver on its contract. The firm had been tasked with creating a manufacturing system that could increase the production rate of Smashmallow’s product, while simultaneously preserving the marshmallows’ quality. The jury found that the company could not meet the obligations of the contract, resulting in the heavy penalty.
Despite the resounding victory for Smashmallow, the damages caused by the defective system may have had substantial implications on the company’s manufacturing capabilities and future growth. Further information regarding the in-depth proceedings of the case can be found at Law360.