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Bay Area Coffee Sues Grocery Chain Over Contract Dispute

Benicia, Calif.-based Bay Area Coffee Inc. is suing a Sacramento-area grocery chain, alleging that the company has violated its contract by discontinuing to purchase one of its brands.

Bay Area Coffee sues Raley's Over Nob HillThe suit, filed in Yolo Superior Court, takes aim at Raley Nob Hill Trading Company and one of its executives, arguing that Raley’s had no grounds to cut off the purchase of its in-house Nob Hill brand roasted beans, which represent approximately 85 percent of the contract, according to a Sacramento Bee report.

The suit also alleges that Bay Area Coffee has approximately $450,000 worth of grinders and other equipment and other equipment in Raley’s stores. A spokesman for the grocery chain told the Bee that Raley’s had not yet seen a copy of the lawsuit.

“We have not filed our counterclaims to their meritless allegations,” John Segale told the paper.

The full story: Sacramento Bee