Dinli
Metal Ordered To Pay U.S. Distributor $45.6
Million
U.S. Federal Court finds Taiwan
ATV manufacturer defrauded distributor
Dallas, TX (3/11/2008) - A Federal
Judge ruled in favor of U.S. powersports distributor,
Dinli USA, LLC, awarding $45.6 million in damages
against Dinli Metal Industrial Co., Ltd. located
in Taichung, Taiwan. Dinli Metal failed to appeal
the judgment.
The United States District Court for the Northern
District of Texas ruled that Dinli Metal breached
its Distribution Agreement, made false representations
when negotiating the Distribution Agreement and
Asset Purchase Agreement, committed fraud when
negotiating the Distribution Agreement and was
negligent in the performance of their duties.
The court specially found that Dinli Metal breached
the distribution agreement by a) failing to obtain
compliance certifications from the Environmental
Protection Agency; b) failing to notify Dinli
USA of its inability to deliver products as provided
for in the contract; and c) failing to provide
warranty parts and services under the contract.
The Court found that Dinli Metal’s refusal
to satisfy dealer warranty claims for units sold
before and after the closing of the transaction
with Dinli USA adversely affected Dinli USA. Dinli
Metal made a number of all allegations against
Dinli USA. The court ruled in Dinli USA’s
favor on all allegations lodged by Dinli Metal,
finding that Dinli Metal did not present any genuine
issue of material facts regarding its claims against
Dinli USA.
While collection of the judgment is uncertain,
Dinli USA still holds exclusive distribution rights
for any products made by Dinli Metal Industrial
Co., Ltd. for the U.S. market. Dinli Metal manufactures
products for its own brand as well as other brand
names. Dealers should visit Dinli Metal’s
website at www.dinliglobal.com to familiarize
themselves with Dinli Metal’s products.
U.S. dealers and distributors are cautioned against
obtaining Dinli Metal manufactured products from
any source other than Dinli USA.
www.dinliusa.com
2007 Royal Lane Suite 190
Dallas, TX 75229
1-(800)-310-5519 Toll Free
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