Two men who claim the soft drink and snack maker stole their idea for a new drink — bottled water — sued PepsiCo in Wisconsin and won a $1.26 billion default judgment last month when the company didn’t respond.
PepsiCo wants the court to toss the award or at least give it a chance to fight the accusations.
PepsiCo says it wasn’t aware of the lawsuit until about a week after the award. And it says it should not have been served the lawsuit in North Carolina, where it is incorporated, but in Purchase, N.Y., where it is based.
The company says its response was also delayed when a secretary failed to act on letters relating to the case.
h/t: Abe Nielsen and nytimes.com
Blame the secretary! Sounds like Pepsi’s been watching Mad Men a little too much.
Pepsi’s lawyers need to be disbarred if they think they can’t be sued in the state of their incorporation in addition to their principal place of business.
Seriously, that’s Civil Procedure 101
Companies that incorporate in tax and tort friendly states like NC and Delaware have to deal with getting served process in those states. It’s just about the only negative consequence to an otherwise completely corporate friendly practice.
Had they been served in Purchase, NY and not responded they would be arguing that they should have been served in NC.
At any rate, I know one secretary who won’t be getting a Christmas bonus.
Companies that incorporate in tax and tort friendly states like NC and Delaware have to deal with getting served process in those states. It’s just about the only negative consequence to an otherwise completely corporate friendly practice.
Had they been served in Purchase, NY and not responded they would be arguing that they should have been served in NC.
At any rate, I know one secretary who won’t be getting a Christmas bonus.
@2: It literally is Civil Procedure 101. I’m a 1L at Seattle U and we’re going over this very fact at the moment. I wonder what’s going to happen as a result. Pepsi can’t appeal this on any fact other than their failure to respond, correct? Doesn’t that mean they have basically no recourse?
@2: It literally is Civil Procedure 101. I’m a 1L at Seattle U and we’re going over this very fact at the moment. I wonder what’s going to happen as a result. Pepsi can’t appeal this on any fact other than their failure to respond, correct? Doesn’t that mean they have basically no recourse?
@2: It literally is Civil Procedure 101. I’m a 1L at Seattle U and we’re going over this very fact at the moment. I wonder what’s going to happen as a result. Pepsi can’t appeal this on any fact other than their failure to respond, correct? Doesn’t that mean they have basically no recourse?
Did Faber read the fine print on the posting guidelines?
@8 no
@8 no
Faber, yes, of course they can appeal, but they’ll be forced to appeal the decision to set aside the default judgment, and only on that issue, and judges are typically given wide discretion on that issue.
Hah! Didn’t double-post (though the server’s so fucked-up I was certainly tempted).
@1, Lois, a secretary on “Mad Men”, CUT OFF THE NEW TOP EXECUTIVE’S FOOT with a riding mower in the office and didn’t get fired.
Pretty boneheaded on Pepsi’s part but, then again, the conflict was over bottled water. Evian has been around for over 100 years, so how is this a new idea?
@5,6,7 Ha, yeah well I am a 3L at SU. Who do you have for Civ Pro? Shapiro?
@13 – Great scene. I think all of the American execs breathed a sigh of relief when Wonder Boy got taken out. Lois did them a favor.
I just wonder if that secretary will be getting a noce bonus from the plantiffs.
You snooze, you lose
Now tell me how they’re going to get Pepsi to pay, lawyers. Corporations = corporate personhood, and person’s don’t have debtor’s prison. Have Pepsi’s employer granish wages? Ha! Pepsi works for itself. Revoke Pepsi’s passport? Ha, Pepsi isn’t a person. Too big to fail! LOLOLLLLL.
You can’t possibly be that stupid, Westlake. Please tell me it ain’t so. (Ever hear of garnishing bank accounts?)