Worcester, MA (PRWEB) February 17, 2010
After a week-long trial in federal court in Worcester, Massachusetts, a jury returned a verdict in the amount of $1.2 million in favor of Lincoln Precision Machining Company against a Pennsylvania company, Lug-All Corporation. Lincoln Precision, in business since 1945, developed a line of hand powered portable hoists (more commonly known as come alongs, winch hoists, wire rope pullers, or strap hoists).
The relationship with Lug-All began in the late 1940’s under Lincoln Precision’s founder, Roland “Roy” Hallen. Under that relationship, Lincoln Precision designed and manufactured the portable hoist products and Lug-All sold them. Under the parties’ 1949 and 1953 written agreements, the parties jointly agreed that Lincoln Precision was not to sell and Lug-All was not to manufacture those products. The parties continued to do business under that arrangement until February of 2008 when Lincoln Precision discovered that Lug-All had spent more than three years secretly developing a manufacturing facility. During that same time frame, Lug-All led Lincoln Precision to believe that the parties were continuing to work together. Under that scheme, Lug-All persuaded Lincoln Precision to provide valuable manufacturing information which it then used in its own competitive efforts.
The jury found that Lug-All had breached its contract with Lincoln Precision. All contracts carry an implied obligation that each party must deal with the other fairly and in good faith. The jury found that Lug-All did not do so, but had undertaken efforts to destroy Lincoln’s rights to receive the full benefits of the relationship. Following those findings, the jury awarded Lincoln Precision substantial damages.
When asked for reaction, David Hallen, President of Lincoln and son of founder Roy Hallen, said, “We are very pleased that the jury sent such a strong message to Lug-All that its conduct was simply unacceptable. Lug-All’s actions cost many good people their jobs and threatened our business. With this verdict, we should be able to concentrate on rebuilding the company and creating new jobs.” Attorney Richard Van Nostrand of Worcester law firm Mirick O’Connell, lead counsel for Lincoln Precision, added “The justice system has righted a terrible wrong.”
A further hearing is scheduled before Judge Dennis Saylor on February 24, 2010 to take up other aspects of the case, including whether damages should be multiplied or attorneys fees awarded.
Lincoln Precision now markets its full range of portable hoist products under the Lincoln Hoist® brand. Noting that the company has had to devote a lot of time and resources to the law suit against Lug-All, David Hallen added: “We are extremely grateful for the support and encouragement we have received during this difficult process from people throughout the industry. With the successful conclusion to this litigation, we can return to doing what we have done for 60 years—producing the best American made winch hoists possible. This result opens the door to a new period of growth for Lincoln Hoist® and our distributors.”
For further information, contact Lincoln Hoist® at Tel: (774) 551-9002, http://www.LincolnHoist.com, or questions(at)LincolnHoist(dot)com.