EQUIPMENT NEWS

Aug. 1, 1999
Judge Sides with Multiquip in Trademark Case A federal judge recently denied an appeal of a 1997 jury verdict by Chris Smith and his companies, finding

Judge Sides with Multiquip in Trademark Case A federal judge recently denied an appeal of a 1997 jury verdict by Chris Smith and his companies, finding that they had intentionally infringed the Rammax trademark used by Multiquip, the Carson, Calif.-based company told RER.

Judge Catharine Carruthers also ordered Smith and his companies - Sea-Roy Corp. and Southern Contractors' Equipment Inc. - into involuntary Chapter 7 bankruptcy. She ordered the appointment of a trustee to liquidate the companies' assets.

A lawsuit brought by Smith and Sea-Roy against Multiquip led to counterclaims, resulting in a jury's finding that Smith's companies had failed to repay debts owed to German firm Rammax Maschinenbau GmbH and had infringed the Rammax trademark.

The judge also rejected the bankruptcy plan submitted by Smith, who was found personally liable for the $6 million in unpaid debt.

JLG to Add Fifth Plant Continuing to expand production capacity, aerial work platform supplier JLG Industries has agreed to acquire a 300,000-square-foot manufacturing plant near Shippensburg, Pa., about 40 miles northeast of its McConnellsburg, Pa., headquarters.

The facility, which will produce boomlifts and scissorlifts, is expected to be in full production with about 400 employees by early next year. JLG said costs to acquire and equip the plant will total about $25 million.

In other news, JLG has completed its acquisition of Gradall Industries for about $200 million, paying $20 per share. Gradall's New Philadelphia and Orrville, Ohio, plants included in the deal will continue to produce telescopic material handlers and excavators, according to JLG president and CEO David Black.

JLG also has a manufacturing plant in Bedford, Pa.

New Holland to Conclude Case Buy in October The president of Fiat, New Holland's parent company, recently announced that it plans to complete its acquisition of Case Corp. by October 1999.

"We are currently seeking approval and we have already presented documents to the antitrust authorities and SEC," said Fiat chief executive Paolo Cantarella.

New Holland agreed to buy Case in May for about $4.3 billion in cash in a deal that will create the world's third-largest construction equipment manufacturer. The venture is expected to boost The Netherlands-based New Holland into the North American construction equipment market and give Racine, Wis.-based Case a foothold in Europe.

OmniQuip Anticipates Smaller Sales Increase Omniquip International, Port Washington, Wis., anticipates sales for the remainder of the fiscal year will increase 15 percent to 17 percent, which is short of expectations.

The manufacturer cited continued weakness in its Snorkel aerial work platform business, which is being reorganized, including a 25 percent reduction in the work force and discontinuation of certain models.

"The ongoing consolidation in the light construction equipment industry caused by the fast-paced growth of the national rental fleets has created a very competitive environment, including significant changes in buying patterns," said OmniQuip president Enoch Stiff. "The aggressive actions we are taking are an acceleration of planned actions designed to meet these changing market dynamics."

Deere Sues Manufacturer Over Gator Patents Deere & Co., Moline, Ill., filed a federal lawsuit to prevent Howard Price Turf Equipment, Chesterfield, Mo., from manufacturing and selling a product that Deere claims violates design patents for its Gator utility vehicle, specifically the 6X4 version.

In April, Deere filed suit in the U.S. District Court in Rock Island, Ill., to stop Kubota Tractor Corp. from using a patented design on a lawn tractor. The case is pending.

In other Deere news, the company recently agreed to buy Schneider Logemann's stake in Brazilian farm equipment maker SLC-John Deere, which would give Deere full ownership of the company.

Snorkel's Roach Retires Don Roach, the aerial industry's marketing executive of longest tenure, retired from Snorkel on August 1. Roach had served as vice president of sales and marketing since 1977, when he joined the St. Joseph, Mo.-based company to help it gain entry into the aerial work platform business.

Roach, who has slowed his pace because of health problems over the past decade, told RER that he felt that the reorganization plans of parent company OmniQuip International, Port Washington, Wis., were excellent, but that the job called for a younger executive. "I told the president of OmniQuip: 'You need a 40-year-old Don Roach, not a 57-year-old one.' "

Roach joined Snorkel before the company had built its first prototype lift. "All we had were lines on a piece of paper, and I had the chance to work with the design engineering group," he said. Roach played a major role in popularizing aerial work platforms and built the company's now-extensive dealer network from the ground up.

Mike Henninger was promoted from within Snorkel's sales team to the position of vice president of sales. The company will soon hire a vice president of customer services, Roach added.

In other Snorkel news, former vice president of sales Dan Malman has been promoted to senior vice president of OmniQuip Alliance Group to work with the manufacturing divisions to promote national account business.

Court Finds Case Negligent in Tractor Accident The Wisconsin State Supreme Court recently ruled that Case Corp., Racine, Wis., must pay $8.5 million in damages to a man who lost his arms while clearing hay in front of a baler powered by a Case 970 tractor.

A Racine jury had concluded that the design and warnings for the tractor were negligent and awarded $6.5 million in compensatory damages and $2 million in punitive damages. The state Supreme Court upheld the ruling.