Interesting Lawsuit by Toys R LLC and

Here’s an interesting online case between Toys R and

After a lengthy trial, the Court found that defendant had breached an agreement it had entered into with plaintiff LLC (“Toys R Us”), by permitting third parties to sell toys on Amazon’s web site.  Finding that this breach went to the substance of the parties’ agreement – which as interpreted by the Court provided that Toys R Us was to be the sole third party toy retailer on Amazon’s web site – the Court granted Toys R Us’s request that the agreement be terminated.  Notwithstanding its finding that such a breach had occurred, the Court did not award Toys R Us damages.  The Court also rejected counterclaims asserted by Amazon, arising out of Toys R Us’s alleged failure to maintain levels of inventory sufficient to meet customer demand.

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