 A favourable ruling for Clark.
PHOTO: DREAMSTIME.COM |
An eight-person federal jury ruled in favour of Clark Material Handling Co in the amount of USD3,040,090 on 27 February.
Clark
sued Toyota Material Handling USA Inc (TMHU) in a dispute about relations with Charlotte-based dealership Southeast Industrial Equipment Inc (SIE). Clark accused TMHU of unfair competition, tortious interference with contract, tortious interference with prospective economic advantage and violations of the North Carolina and South Carolina unfair trade practice acts.
Dennis Lawrence, president of Clark in Lexington, Kentucky, says: "Clark is pleased with the verdict."
A statement from Columbus, Indiana-based TMHU says: "While the jury returned a mixed verdict ... the judge ordered more briefing before he enters a final judgment. The judge indicated that there is still more work to be done before the case is complete."
Judge Max O Cogburn Jr could triple the amount of Clark's damages award under North Carolina law. That would increase the award to more than USD9 million plus attorneys' fees.
Both parties have an opportunity to file motions following the trial. A party has 30 days to appeal after the judge enters a final judgment. The trial took place in the US district court for the western district of North Carolina in Charlotte.
In dealing with the issues, the jurors answered "yes" to these questions:
1. Did Toyota wrongfully interfere with a contract right between Clark and SIE?
2. Did Toyota wrongfully interfere with a prospective economic advantage attained by Clark in its contract with SIE?
3. Did Toyota coerce SIE into terminating its dealer relationship with Clark and to thereby stop purchasing forklifts manufactured by Clark?
4. Did Toyota unlawfully coerce SIE into ending its relationship with Clark by threatening to terminate SIE's Toyota dealership in (Richmond) Virginia?
Jurors said "no" when asked whether Toyota unlawfully coerced SIE into ending its relationship with Clark by unfairly demanding that SIE issue a retraction or denial of the
Forkliftaction.com article in which it was reported that SIE had become a Clark dealer.
Clark appointed SIE on 17 May 2012 as an authorised dealer for seven locations covering metropolitan Charlotte, eastern North Carolina, all of South Carolina and the cities of Savannah and Augusta in Georgia. Clark announced the SIE appointment in a 10 July 2012 press release;
Forkliftaction.com News published its report in the 18 July 2012 issue.
The current non-exclusive agreement between TMHU and SIE expires on 17 April 2015 and permits SIE to sell other forklift brands. SIE represents the Toyota, Aisle-Master, Hoist and Combilift brands.
In the US market, TMHU is the longstanding top seller of forklifts, and Clark has a 2%-3% share.
Toyota Industries Corp of Kariya, Japan is TMHU's ultimate parent. Young An Hat Co Ltd of Bucheon, South Korea is Clark's ultimate parent.