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Crane to Make Good on Costly Sidewall Issue
Posted By RVBusiness On April 22, 2009 @ 9:47 am In Breaking News | 1 Comment
Crane Co. announced Tuesday (April 21) that on April 17, the company reached agreement to settle a previously disclosed lawsuit brought by Coachmen Industries Inc. alleging failure of the company’s fiberglass-reinforced plastic material used for sidewalls in RVs.
As previously reported, a liability verdict was rendered by a jury in this lawsuit on Jan. 27, with the damages to be determined by a second jury later this year.
The aggregate damages sought by Coachmen totaled approximately $65 million and included approximately $20 million in repair and other direct costs allegedly incurred, as well as approximately $45 million in other consequential damages such as lost market share and lost profits.
In a mediation, Stamford, Conn.-based Crane agreed to pay Coachmen an aggregate of $17.75 million in several installments through July 1, 2009. Based upon both insurer commitments and liability estimates previously recorded, Crane recorded a pre-tax charge of $7.75 million in connection with this settlement.
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