PORTLAND, Maine — A judge has dismissed a federal complaint against Nestle-owned Poland Spring Water, arguing newcomer Maine Springs did not prove that Nestle’s branding harmed its business.
The ruling leaves open the possibility for Maine Springs to sue Nestle over allegations that Nestle’s legal threats drove away potential buyers of Maine Springs water.
The lawsuit came after a years-long dispute between the companies over labeling. Maine Springs, which has a license to extract water in the town of Poland Spring, planned to label its water with that town as the source, in accordance with federal law.
According to court records, Nestle threatened legal action against Maine Springs in October 2011 and 7-year-old Maine Springs has not bottled or sold its water since.
Maine Springs in August filed a lawsuit against Poland Spring Water, arguing the company name was false advertising, as water bottled and sold as Poland Spring Water does not come from Poland Spring.
Maine Springs’ suit also claimed that the Nestle-owned company’s water comes from various sources and not natural springs alone. The Nestle-owned company’s advertising and legal threats, Maine Springs claimed, harmed its ability to sell its spring water from Poland Spring, Maine.
U.S. District Court Judge George Singal dismissed that claim, arguing primarily that Maine Springs could not prove injury because it had not yet entered that market.
“Nestle Waters’ allegedly false advertising or false designation of origin cannot have harmed Maine Springs by channeling customers toward Poland Spring brand water when Maine Springs has not even begun to offer bottled water,” Singal wrote.
Maine Springs cited the federal Lanham Act in claiming that Poland Spring Water harmed its business.
The company also claimed that Nestle’s threats of litigation scuttled deals to sell water to other bottlers and distributors, including Crystal Rock, Niagara, Summit Spring and Pine State Trading Co.
“As a result,” the complaint stated. “Maine Springs has been prevented from selling any of its water and the bottling and distribution facilities have sat idle.”
Singal did not rule on those claims but left open the possibility for Maine Springs to take up that issue in state court.
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