A Napa closure company is suing Robert Mondavi Winery for US$7m for breach of contract.
Gardner Technologies, which makes the MetaCork, a composite cork and screw closure, is suing Mondavi for US$7m, claiming the Napa winery failed to honour promises made earlier this year.
Gardner Technologies is reported to have lost around US$5.7m in possible investments.
Gardner claims Mondavi agreed in January 2004 to use the MetaCork on its range of Mondavi Private Selection wines and that Mondavi gave signed assurances that it would be using the new closure.
Since then, Gardner says it has had little news, and is suing Mondavi for breach of contract, negligent misrepresentation, interference with contractual relations and defamation.
Representatives for the two companies are due to meet in court in May next year.
The MetaCork is already being used by Napa wineries including Clos du Bois, Kendall-Jackson and Fetzer.
Written by Oliver Styles, and agencies