The Marie Callender's Lawsuit From The '80s Not Many People Know About

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Marie Callender was the undisputed queen of pies. Her name is linked to both the frozen food brand and a chain of restaurant/bakeries that sold one of the best restaurant chicken pot pies. But while her story began as nice as pie, it later evolved into a major lawsuit.

Marie's dream of starting a successful pie business became a reality in 1948, when she sold her family's car for $700 to open a bakery. Her husband, Cal (yes, Cal Callender), and son, Don, helped Marie to grow the business; by 1963, they were cranking out thousands of pies daily. They continued to expand, but eventually, the family wanted an even bigger slice of the pie, if you will. In 1986, Don sold the business to Ramada International, the hotel behemoth, for more than $80 million.

Two years later, Don decided that Ramada wasn't building on or even maintaining the success of the Marie Callender's brand. He also complained that he had no influence over the company, despite an agreement that he'd stay on as president. So he sued Ramada for fraud and breach of contract, requesting a minimum of $66.7 million in damages. 

Don also asked to sell his 2.5 million shares of Ramada stock, which, by contract, he was supposed to keep until 1991. The lawsuit was settled in 1994, severing all Don's ties with the company. Ramada struggled until eventually selling the business. Today, Marie Callender's is overseen by two corporate entities: The restaurants are owned by the Elite Restaurant Group, while Conagra Foods (formerly ConAgra) owns the rights to the food brands, including its frozen entrees and frozen dessert pies. 

Despite ups and downs following this lawsuit, the Marie Callender's brand has kept going for nearly 80 years now, and through Conagra, still puts out pies today (of which we think the Peanut Butter Cream Pie is the best).

The Marie Callender's story: pie and drama

The Ramada lawsuit wasn't the only time that Marie Callender's was entangled in legal issues. In June of 2010, the Centers for Disease Control (CDC) reported that approximately 44 people were diagnosed with symptoms of salmonella poisoning after eating Marie Callender's Frozen Cheesy Chicken and Rice dinners. A recall for the product was issued that same month, and two lawsuits were filed against new owners Conagra, though both were settled.

The restaurant and retail chain was also embroiled in a 2014 class-action lawsuitwhen a man in California sued Marie Callender's Pie Shops Inc., over what he alleged was false advertising. The lawsuit claimed that although Marie Callender's baking mixes (including its cornbread — which resides at the bottom of our ranking of store-bought cornbread mixes — muffin, and biscuit mixes) claimed to be all-natural, they actually contained a synthetic and potentially dangerous ingredient. The case was settled out of court for $100,000.

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