Court Grants Landmark Injunction in Favor of Pan American Properties Under Puerto Rico Dealer’s Act

Feb 2025
Delgado & Fernández, LLC

The Litigation Practice Group at Delgado Fernández, LLC has secured a significant victory in a Puerto Rico Dealer’s Act (“Act 75”) case. This week, the Puerto Rico Court of First Instance issued a preliminary injunction in favor of Pan American Properties, Corp. (“Pan American”) against Sazerac Company, Inc. (“Sazerac”) and CC1 Beer Distributors, Inc. (“CC1”). The ruling immediately halts the distribution of Fireball Cinnamon Malt Beverage products in Puerto Rico and orders the removal of all related marketing materials within 15 days, under penalty of contempt.

Court Sides with Pan American on Key Act 75 Violations

Pan American, the long-standing exclusive distributor of Fireball Cinnamon Whisky and the Fireball brand in Puerto Rico, argued that Sazerac’s introduction of a new malt-based Fireball product—distributed through CC1—violated its rights under Act 75. The Court agreed, finding that:

  • Pan American has a high probability of success on the merits of its claim.
  • Fireball Cinnamon Malt Beverage is a new model under the Fireball brand.
  • The product’s design intentionally misled consumers and negatively impacted Pan American’s sales.
  • Sazerac sought to exploit the market Pan American built, violating its exclusive distributor rights under Act 75.
  • CC1 intentionally interfered with the distribution agreement between Pan American and Sazerac, causing economic damages and the loss of goodwill Pan American established for the Fireball brand.

Pan American was represented by:

For legal inquiries regarding this decision and its potential impact on your business, please contact our Litigation Practice Group.