Primo Water Corp. said in a regulatory filing Tuesday that a federal District Court judge in Texas has dismissed a lawsuit against it and DS Services by three regional operators in the state: Artesia Springs LLC, HOD Enterprises LP, and BBB Water Inc.
The Winston-Salem company was sued Aug. 8 by the regional operators on claims of breach of contract, conspiracy and fraud.
In November 2013, Primo entered into an agreement with DS Waters of America Inc. of Atlanta to take responsibility for DS for five-gallon retail exchange customers, including account management, billing and collections.
A magistrate judge recommended Jan. 13 the dismissal of the lawsuit enforcement of the alternative dispute resolution provisions of the regional operators’ contracts. On Jan. 31, the District judge entered an order endorsing the magistrate judge’s recommended decision and dismissed the case without prejudice, which means the lawsuit can be refilled.
The District judge indicated that to pursue their claims, the plaintiffs would have to proceed with alternative dispute resolution in North Carolina, as provided in their contracts.