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Sriracha Hot Sauce Maker Lost Its Legal Battle to Former Jalapeno Provider

Sriracha hot sauce maker lost its legal battle with its former jalapeno provider after a California jury granted the pepper grower $23.3 million on Wednesday.

Underwood Ranches provided Huy Fong Foods with the ripe red Jalapeno Peppers that it wanted for its Sriracha. However, in 2017 for 28 years, that relationship got here to an end after the two couldn’t attain a settlement for the harvest that year.

California based Huy Fong initially filed a lawsuit in opposition to its jalapeno provider in August 2017 – accusing Underwood of not returning an overpayment of $1.4 million from the earlier season. Underwood attacked with a countersuit claiming that Huy Fong breached its contract.

The jury awarded Underwood $10 million in punitive damages and $14.8 million to compensate for the two years of financial losses associated with the abrupt dissolution of their working relationship. About $1.5 million was deducted for Huy Fong’s 2016 overpayment.

“Those losses were real, so we’ve received quite a lot of ground to make up. However, it was so emotionally rewarding to hear the entire jury members assist us unanimously,” Craig Underwood, owner of Underwood Ranches, mentioned in an interview.

Underwood stated that the corporate laid off about half of its employees after its relationship with Huy Fong went bitter.

Whereas the divorce drama unfolded within the courts, it additionally performed out on social media. After Underwood created its line of hot sauces with its peppers, the pepper grower tweeted, “Without Underwood’s pepper, it’s simply another condiment.”

Huy Fong has additionally used Twitter to talk out concerning the lawsuit, saying in March that “the truth will come out at the trial.”