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WILTON, Conn., March 8, 2011 (GLOBE NEWSWIRE) -- Drinks Americas Holdings, Ltd. (OTCBB:DKAM), a leading developer and marketer of beverage products, today announced that on March 7, 2011, the Company received notice of an arbitration award to Drinks Americas, totaling $664,659.05 in the matter of Liquor Group and or Liquor Group Holdings vs. Drinks Americas.
In the award, the arbitrator denied Liquor Group's claims, finding that Drinks Americas did not breach its contract with Liquor Group or any of its entities and that Drinks Americas did not tortuously interfere with Liquor Group's business. Accordingly, the arbitrator did not award any damages to Liquor Group.
The arbitrator found that Liquor Group's liquidation and failure to pay for Drinks Americas products sold by Liquor Group constituted a breach of contract by Liquor Group. The arbitrator further found that Drinks Americas was damaged by Liquor Group's breach in the amount of $180,058.62 and that, pursuant to the contract between the companies, such damages were to be tripled so that, damages and monies owed to Drinks Americas by Liquor Group became $540,175.86.
The arbitrator also found that, pursuant to the contract between Drinks Americas and Liquor Group, Liquor Group was to pay any and all costs and expenses incurred by Drinks Americas in enforcing or establishing its rights under the agreement including reasonable attorney's fees. The arbitrator awarded Drinks Americas $120,605.15 in reasonable attorney's fees along with additional costs of $3,878.04 for a total of $124,403.19.
In summary, the arbitrator found that the total owed by Liquor Group or Liquor Group Holdings for damages, fees and costs to be paid to Drinks Americas, is $664,659.05.
J. Patrick Kenny, CEO of Drinks Americas, commented, "We are extremely happy for our shareholders. This is a material award for an event that disrupted our business. We feel the arbitrator's award is more than fair and just and that it confirms our best business practices and reputation."