Vehicle Distributor Awarded $43.5M

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GlobalMoto LLC, a California-based distributor of powersports vehicles, has won a $43.5 million Superior Court verdict against one of its Chinese suppliers, reports Brian Martinez in his blog for the Orange County Register.

Officials with GCK Industrial USA Co. Ltd., the California-based subsidiary of the defendant, had been accused of fraud, misrepresentation and breach of contract in a racing cart deal.

"The jury believed GlobalMoto's claims that GCK officials convinced GlobalMoto to enter a racing cart design, manufacturing and distribution contract by telling lies in writing; and sold the carts through its own distributor to cut out GlobalMoto?s share of the profits," Martinez writes.

"Among the false statements that GCK told GlobalMoto in writing were that its nearly finished racing carts had received approval from the Environmental Protection Agency and the California Air Resources Board," continues Martinez, citing GlobalMoto's attorney, who reportedly said the defendants helped his case by lying to the jury.

According to the blog, GlobalMoto helped design GCK's product and was to sell the GCK racing karts through Sam's Club. "Among the cash losses GlobalMoto incurred were $42,000 in liability insurance and money spent for the CEO to travel to China once a month," writes Martinez, again citing the plaintiff's attorney.