LAWSUITS NEWS & LEGAL INFORMATION
The Brix Group, Inc., Pana-Pacific, and Harry Brix
This is a settlement for the Commercial lawsuit.
Satellite Mobile Systems, Inc. ("SMS") developed, manufactured, and sold a satellite dish antenna mounting system and accessory parts for permanent or temporary installation on trucks, recreational vehicles, emergency vehicles, SUVs, and boats. In 1997, SMS entered into a national distribution agreement ("NDA") with The Brix Group, Inc. and Pana-Pacific Corp. to distribute one of its products to the heavy trucking industry. In particular, the NDA called for the defendants, the self-proclaimed dominant leaders in providing electronics to the heavy trucking industry, to purchase almost $40 million worth of SMS product. Defendants, however, failed to make the required purchases under the NDA. Consequently, SMS filed suit in federal court for breach of contract and fraud.
After four days of trial, the parties agreed to settle the lawsuit. As part of the settlement, the defendants, among other things, agreed to purchase approximately $1 million of one of SMS's products to rehabilitate SMS in general and with regard to the heavy trucking industry. To formalize their settlement, the parties and their attorneys dictated all of the terms of the settlement agreement to the court reporter for the federal court. All of the parties (with their attorneys present) swore that they agreed to the terms and conditions presented to the court reporter. As part of the 24-page settlement agreement, Harry Brix, CEO of The Brix Group, personally guaranteed performance of the settlement agreement. Once the settlement agreement was dictated, the parties announced to the court that the matter had been settled. The Judge then dismissed the jury and SMS's claims with prejudice.
Defendants, however, later refused to abide by the terms of the settlement agreement, contending that the settlement agreement which had been sworn to by all parties was only an agreement to agree. Faced with defendants' conduct, SMS sued defendants for, among other claims, breach of the settlement agreement and promissory fraud.
The case was tried for a week and one-half. On May 27, 2005, the jury returned a verdict for SMS for $42.3 million ($14.1 compensatory damages, $28.2 punitive damages).
Information provided by: [Gordon & Associates Law Firm]
After four days of trial, the parties agreed to settle the lawsuit. As part of the settlement, the defendants, among other things, agreed to purchase approximately $1 million of one of SMS's products to rehabilitate SMS in general and with regard to the heavy trucking industry. To formalize their settlement, the parties and their attorneys dictated all of the terms of the settlement agreement to the court reporter for the federal court. All of the parties (with their attorneys present) swore that they agreed to the terms and conditions presented to the court reporter. As part of the 24-page settlement agreement, Harry Brix, CEO of The Brix Group, personally guaranteed performance of the settlement agreement. Once the settlement agreement was dictated, the parties announced to the court that the matter had been settled. The Judge then dismissed the jury and SMS's claims with prejudice.
Defendants, however, later refused to abide by the terms of the settlement agreement, contending that the settlement agreement which had been sworn to by all parties was only an agreement to agree. Faced with defendants' conduct, SMS sued defendants for, among other claims, breach of the settlement agreement and promissory fraud.
The case was tried for a week and one-half. On May 27, 2005, the jury returned a verdict for SMS for $42.3 million ($14.1 compensatory damages, $28.2 punitive damages).
Information provided by: [Gordon & Associates Law Firm]
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