Loob takes Chatime Malaysia to court

1 min readAug 31, 20189:26 AM

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A defamation suit filed by bubble tea brand Tealive against Chatime Malaysia will be heard next February.

Tealive’s owner Loob Holdings was formerly the primary franchise holder for Chatime before a series of disputes resulted in Chatime owners La Kaffa International terminating their agreement. Tealive is claiming that statements made and released to the media subsequent to Loob Holding’s departure from the brand were injurious to its business.

The decision to proceed to trial follows the rejection of an appeal to cancel the suit by Chatime and its directors.

Tealive is demanding a written apology to be published in English and Bahasa Malaysia newspapers, an injunction to prevent a repeat of the defamatory statements, and general damages, costs and other relief as appropriate.

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What this means

This litigation, stemming from Loob Holdings' acrimonious departure from the Chatime franchise, shows the fierce competition and reputational risks in Southeast Asia's food and beverage sector. Tealive, a highly successful pivot, asserts Chatime's post-split statements harmed its business, a common concern when former partners become direct rivals. Unlike similar quick-service food disputes, this case focuses on public statements rather than IP or trade secrets, indicating a direct attack on market perception. The outcome could set a precedent for how competitors handle public narratives following business separations, potentially influencing future marketing strategies. Watch for the court's February decision on damages and injunctive relief.

Aiko Tanaka · Retail News Asia newsroom

Questions & Answers

What is the core reason Tealive is suing Chatime Malaysia?

Tealive is claiming that statements made to the media after Loob Holding left the Chatime brand were damaging to its business. These statements are the basis of the defamation suit.

What specific actions is Tealive seeking from Chatime through this lawsuit?

Tealive is demanding a written apology, to be published in both English and Bahasa Malaysia newspapers. They also seek an injunction to prevent further defamatory statements and general damages, costs, and other relief.

When is the defamation suit against Chatime Malaysia scheduled to be heard?

The defamation suit filed by Tealive against Chatime Malaysia is scheduled to be heard next February. The decision to proceed to trial was made after Chatime's appeal to cancel the suit was rejected.

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