Boom truck manufacturer Manitex has reached an out of court settlement with one of its former dealers which had brought a breach of contract suit.
The case is one in a string of actions thrown up in the wake of the company reorganising its dealership and distribution arrangements in the mid-’90s.
Can-West Equipment & Crane of Edmonton, Canada, filed a claim against Manitex on 16 February 1996, alleging breach of a contract it signed with Manitex in September 1995 to distribute Manitex cranes in Alberta, Saskatchewan and North West Territories of Canada, to be effective on 1 January 1996. The core of the dispute was over exclusivity of the dealership agreement.
After nearly two years of wrangling, the case was settled out of court in November 1997.
But at least two actions against Manitex are still outstanding.
Allan Montonen, who is credited with setting up Manitex’s wholly owned California-based dealer Manitowoc Western Benicia, has sued for fraud against his former employers in a long-running and complex case.
Montonen alleges that he had an option, agreed in writing and signed by Manitowoc Company Inc president Fred Butler, to buy the dealership business. But Montonen’s employers sought a ruling in Wisconsin that its agreement with Montonen was not binding and it sold the business to Anthony Crane. Montonen was laid off.
The Wisconsin court later found in favour of the company’s right to sell to Anthony, ruling that the agreement with Montonen was only an agreement to agree, not a binding contract.
Montonen’s attorneys then filed a complaint for fraud against Manitowoc Western which the defendant tried and failed to get struck off. Montonen then filed against Manitowoc and Manitex as well. The case is still pending.
The dispute mirrors the allegations of Mega Cranes of Vancouver (Mega files breach of contract claim… p3, Sep97).
Mega claims that Manitex breached a distributorship contract. This case is now set to be heard in May.
