The court awarded $10M in punitive damages in addition to the $13M in compensatory damages. So the options are basically "Huy Fong's lawyers are criminally incompetent" or "Huy Fong absolutely screwed over their supplier".

By way of contrast, I've seen so many corporations led by deranged idiots who used to make good decisions within their realm of competence that I have no trouble believing that Huy Fong decided that they could completely dominate Underwood, and were very wrong.

The more power a person believes they have, the stupider they act.

Quoth wikipedia: "The jury unanimously ruled in favor of Underwood on the grounds of breach of contract and fraud."