US materials handling manufacturer Lincoln Hoist has been awarded US$1.2m (A$1.35m) in damages in a suit against Lug-All Corporation.
According to Lincoln Hoist, its relationship with Lug-All began in the late 1940’s under Lincoln Precision’s founder, Roland Hallen. Under the contract Lincoln Precision designed and manufactured the portable hoist products and Lug-All sold them.
The parties’ 1949 and 1953 written agreements stated Lincoln Precision was not to sell and Lug-All was not to manufacture those products.
The two companies are said to have continued to do business under this arrangement until February 2008 when Lincoln Precision discovered Lug-All had spent over three years secretly developing a manufacturing facility.
The jury found Lug-All had breached its contract with Lincoln Precision and had also undertaken efforts to destroy Lincoln’s rights to receive the full benefits of the relationship.
Lincoln Precision says following those findings, the jury awarded it substantial damages.