Davis/favco dispute goes to arbitration

Favelle Favco Cranes (USA) is to go into arbitration with its axed president Danny Davis after appealing against a court ruling that appeared to support Davis’s case.

Davis, who owned 10% of the company, was sacked by 90% owner Muhibbah Engineering of Malaysia in September (Favelle Favco removes chief of US company Oct99, p3). It is believed that Muhibbah was disappointed at the level of sales since the innovative range of Caterpillar-based crawlers and mobiles was launched at Conexpo last March.

In a court hearing in November to settle ownership of design patents, FFC won the right to resume production of its current line only until August 2000, but was told that it would have to pay 1% commission on each unit made to Davis, whose patent was re-issued.

Davis was also given clearance to build the cranes – and without conditions.

However, FFC appealed against the ruling and the judge ordered the parties into arbitration.

The cranes, which have been featured in previous issues of this magazine, are notable for their reliance on outsourced components. Only lattice boom sections were actually made by FFC. The drivetrains are supplied by Caterpillar Industrial Products and telescopic booms by Manitex.