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.