LV water distributor sues supplier

Thursday, Aug. 3, 2000 | 11:06 a.m.

A Las Vegas water distributor is seeking $2 million in restitution from McKesson Water Products Co. of Pasadena, Calif., alleging it was illegally dropped as an exclusive water distributor for Southern Nevada.

In a U.S. District Court lawsuit, J.W. Costello Beverage Co. alleged it was told by McKesson Water, a home and office water delivery service, on June 7 that its three-year distributor agreement was to be terminated June 17 because the distributor didn't carry Sparkletts water in its portfolio.

McKesson Water was acquired in January by the French dairy food and beverage conglomerate Danone Group, which also owns the Sparkletts water brand.

J.W. Costello, which said it agreed last year to distribute and sell McKesson's water products in Clark, Nye, Esmeralda and Lincoln counties in Southern Nevada, argued the "purported obligation" to carry Sparkletts isn't included in the agreement.

McKesson officials couldn't be reached for comment.

Separately, J.W. Costello dropped its lawsuit filed in November against Great Brands of Europe Inc., formerly known as Evian Waters of France Inc. J.W. Costello had sought an injunction to stop Great Brands from ending Costello's exclusive distributor rights to sell Evian Water in Southern Nevada.

J.W. Costello, which was told its distributorship rights would end as of Jan. 7, 2000, alleged Great Brands couldn't terminate its agreement as long as its Evian sales performance wasn't deficient.

"There was a monetary settlement," said Morton Galane, J.W. Costello's attorney, declining to reveal further the terms of the settlement.