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Termination Requires End Of Performance

The following summaries are of recent published decisions of the California appellate courts, the Ninth Circuit, and the United States Supreme Court. The summaries are presented without regard to whether Severson & Werson represented a party in the case.

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Carolina Beverage Corp. v. FIJI Water Co., LLC (2024) 102 Cal.App.5th 538

California law does not recognize the concept of constructive termination in the context of ordinary commercial contracts between business entities.  The social policies that allow constructive termination in the employment and landlord-tenant contexts do not apply to ordinary commercial contracts.  Also, the contract in this case specifically provided four means of terminating the contract, none of which involved a constructive… Read More