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Dinli Metal
Ordered To Pay U.S. Distributor $45.6 Million
U.S. Federal Court finds Taiwan ATV manufacturer
defrauded distributor
Dallas, TX ,
March
7, 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.
Additional Information for Dealers
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