Perdue Seeks Arbitration in Pet Food Contract Dispute

In a petition to compel arbitration filed by Perdue Foods on Tuesday, the food giant requested to compel arbitration in a contract dispute. Perdue alleged that the defendant failed to disclose that another company would be actually performing its functions under the deal.

The contract at issue is a Co-Packing Contract, under which defendant Healthy Partner Pet Snacks, LLC would supply Perdue and “prepare and package certain pet food products for Perdue’s brand label.” However, the petition explained that Perdue discovered after the fact that another company, Golden Valley Natural LLC, was involved. Perdue explained that either Golden Valley was an “undisclosed principal” of Healthy Partner Pet Snacks, or that Healthy Partner assigned its obligations to Golden Valley. Either way, Perdue claims that Golden Valley received 96% of the proceeds paid by Perdue.

The petition says that Healthy Partner Pet Snacks objected to Golden Valley’s addition to an arbitration provision in June. “(T)he response was devoted exclusively to asserting (Golden Valley)’s positions that: (a) it is not a party to the Co-Packing AContract; therefore it is not subject to the arbitration clause therein…”

Among other allegations, Perdue said that Golden Valley also damaged equipment that it had loaned from Perdue, with repairs costing hundreds of thousands. The company is represented by McAllister Detar Showalter & Walker in the District of Maryland matter.