Perdue Seeks Arbitration in Pet Food Contract Dispute

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

The contract in question is a joint packaging contract, under which respondent Healthy Partner Pet Snacks, LLC supplies Perdue and “prepares and packages certain pet food products for the Perdue brand label.” However, the petition explained that Perdue discovered after the fact that another company, Golden Valley Natural LLC, was involved. Purdue explained that Golden Valley was either an “undisclosed manager” of Healthy Partner Pet Snacks, or the health partner assigned its obligations to Golden Valley. Either way, Purdue claims Golden Valley received 96% of the proceeds Purdue paid.

The petition says Healthy Partner Pet Snacks objected to the addition of Golden Valley to the arbitration clause in June. “(T) the reply was devoted exclusively to affirming the positions of (Golden Valley) that: (a) it is not a party to the Joint Mobilization Contract; it is therefore not subject to the arbitration clause contained therein…”

Among other allegations, Purdue said Golden Valley also damaged equipment it loaned from Purdue, and the repairs cost hundreds of thousands. The company is represented by McAllister Detar Showalter & Walker Corporation of Maryland County.

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