Countersuit filed in Spokane ”Real Soda” beverage dispute

A business dispute has bubbled into a second round of accusations between two Spokane companies that both use the words “Real Soda” in their names.

Priscilla Holmstead, owner of Real Soda of Spokane, recently filed a countersuit against the operators of a competing beverage company, Real Soda-Spokane.

Holmstead’s suit, filed in Spokane County Superior Court, is a response to a lawsuit against her filed in March by Stan Ashby and Roberta Reisdorf, owners of Real Soda-Spokane.

Both companies operate as independent beverage distributors. Both order and deliver to retailers or supermarkets “nostalgia” soda beverages, including products such as Nehi and Moxie Orange drink.

Both sides in the dispute argue their business has been harmed by the other.

Holmstead alleges that Ashby and Reisdorf have interfered with her right to operate a business, that they’ve urged customers to not deal with her, and that they’ve told some customers Holmstead has stolen products from Real Soda-Spokane and sold it as her own.

Ashby and Reisdorf allege in their earlier lawsuit that a salesman for Holmstead’s company, David Dominick, has told store owners that their business is about to close. They also accuse Dominick, who had worked for Real Soda-Spokane and then quit last year, of using information from their business to help Holmstead start the competing firm. Both sides deny the other’s allegations.

Through her Spokane attorney, Geoff Swindler, Holmstead also argues that she has exclusive right to use the name Real Soda, after signing a license agreement with a California company, Real Soda in Real Bottles, Ltd. of Torrance, Calif.

Two other suits, also filed in March in Spokane County, allege Reisdorf and Ashby owe money to two distributors of bottled soda. A Seattle distributor, Real Soda-Seattle, claims that Ashby and Reisdorf have not paid for $11,000 in beverages delivered to them. And Real Soda in Real Bottles Ltd. sued Ashby and Reisdorf this year, alleging they owe more than $40,000 for beverages delivered.

Ashby and Reisdorf had ordered soda from the California company and Seattle distributor from 2001 until late 2003, the lawsuits say.

Spokane attorney Michael J. Keyes, representing Ashby and Reisdorf, denied that they owe money to the Seattle distributor. He doesn’t deny they may owe money to Real Soda in Real Bottles, Ltd. “There may be an amount owed to that (California company),” Keyes said. “But we believe the amount is less than what we feel Real Soda in Real Bottles owes us in damages,” he said.

Just as Holmstead countersued Ashby and Reisdorf, they likewise recently filed a countersuit against the California company, alleging it has caused them financial harm through its dealings with Holmstead.

That countersuit also argues that Real Soda in Real Bottles, Ltd. doesn’t hold the rights to license the use of the trademark “Real Soda” in the Spokane area, Keyes said.

Started in 1991 in Southern California, Real Soda in Real Bottles Ltd. has licensing agreements with distributors in California, Oregon, Idaho, Washington, Nevada and Arizona, said Danny Ginsburg, president of the California firm.

Keyes said it’s revealing to him that neither the Seattle distributor nor Ginsburg have sued Ashby and Reisdorf over their use of the name Real Soda-Spokane.

If the California company truly operated a franchise and rightly licensed the name to users, that would be one thing, said Keyes. He contends Ginsburg never did that, creating in effect a “naked license” whereby Ashby and Reisdorf are allowed to use the name without having to continue a relationship with Ginsburg.

Ginsburg said he’s undertaking a series of legal steps to protect his Real Soda trademark. “I guess I operated too much on trust,” Ginsburg said. “Honestly, the only place I’ve had this problem is up there.”