Fleetwood loses $5.2 million lawsuit

Published 10:12 pm Wednesday, January 19, 2005

RIVERSIDE, Calif. – A jury has awarded $5.2 million in damages to The Coleman Co. in the case between Fleetwood Folding Trailers Inc. and Coleman.

Fleetwood Travel Trailers of Oregon, a division of the corporation, has three plants in Northeast Oregon, two in Pendleton and one in La Grande, that manufacture RVs.

The judge could add punitive damages, according to a Fleetwood news release.

The lawsuits included a claim by Fleetwood based on a “negative covenant,” contained in Fleetwood’s 1989 purchase agreement with Coleman. That claim was resolved in Fleetwood’s favor last month when the judge granted Fleetwood’s request for a permanent injunction prohibiting Coleman from licensing the Coleman name in the recreational vehicle industry. The Dec. 16 court decision does not affect Fleetwood’s victory in that portion of the case.

“We are obviously disappointed with the jury’s findings in this case, and we will begin considering our post-trial remedies immediately, which may include a motion for a new trial and an appeal,” said Edward B. Caudill, president and chief executive officer of Fleetwood.

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