The appellants appealed a trial judgment finding them liable for unlawful conduct conspiracy and Purina liable for breach of contract, resulting in a $2 million damages award.
The Court of Appeal allowed the appeal in part, dismissing the conspiracy claim because only Purina's conduct was unlawful.
The Court also reduced the breach of contract damages, holding that damages should be calculated based on the contract's 60-day termination clause, which was the least burdensome mode of performance.
The prejudgment interest rate was reduced to the statutory rate of 5.1 percent.
However, the $30,000 punitive damages award against Purina was affirmed due to its deceitful and reprehensible conduct in surreptitiously supplying a competitor in the respondents' exclusive territory.