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29 August 1996

Local Dealer Wins $1.5 Million in Suit Against Mitsubishi

The Star newspaper has printed a lengthy article on the success of local Frankfort, Illinois businessman Dick Todd and his company, To-am Equipment Company, Inc. in obtaining a $1.5 million verdict against Mitsubishi. Todd and his company had been a Mitsubishi forklift dealer since 1985. In 1994, as part of a restructuring by Mitsubishi to place its dealerships with substantially larger dealers than To-Am, Mitsubishi terminated To-Am as its local dealer. Notwithstanding the dealership contract gave Mitsubishi the right to terminate the dealership "at will," To-Am was able to convince the jury that the termination was a wrongful termination under the Illinois Franchise Act. Gary Leydig, the attorney who represented Mr. Todd and To-Am, is quoted at length in the article on the legal aspects of the case. The article concludes with a quote from Mr. Leydig that "[t]his case sends a very clear message to companies like Mitsubishi that their dealers are protected. And it lets dealers know they have more rights than possibly they realized." Click here to read the Seventh Circuit's opinion affirming this judgment.