Lift Bridge Brewing in Stillwater had big plans to start manufacturing THC-infused seltzers last year after Minnesota legalized the low-dose cannabis drinks.
But the brand Lift Bridge contracted with, Lyvly, allegedly never ordered any products, and a noncompete agreement is keeping the brewery from entering the lucrative cannabis beverage market on its own or with another brand.
Now the brewery is suing Lyvly and is asking a judge to tear up the contract.
"Lyvly is a failed business," reads the suit, filed earlier this month in Washington County. "It has failed to raise the capital necessary to operate its business" and won't be able to order products in the future.
"Lift Bridge and Lyvly entered into a contractual arrangement for Lift Bridge to produce certain products for Lyvly," Vince Louwagie,attorney for the brewery, said in a statement. "Through no fault of Lift Bridge, that arrangement has unfortunately not gone how either party hoped."
Attorneys for Lyvly and its CEO, Stillwater businessman Jon Wood, did not respond to requests for comment Thursday.
Lyvly's attorneys have asked the court to dismiss or pause the case while a similar case in Delaware is underway. Wood and business partner Andrew Heaberlin accused Lift Bridge and its owners of a breach of fiduciary duty.
The case in Delaware, filed in June, said Lift Bridge never delivered samples and alleged a plot to obtain a "secret profit."