A large consulting company's lawsuit against Ingersoll-Rand Co. (IR) was in the news with judgement for the plaintiff. In October of 2015, Seale and Associates filed an amended complaint in the Eastern District of Virginia for breach of contract. In mid-August of 2016, the Judge ruled in favor of Seale and denied Ingersoll-Rand's motion for Summary Judgement.
The case arises from an Engagement Agreement between Seale and IR (and its predecessor American Standard Companies, Inc.). Seale agreed to be American Standard's exclusive agent in the sale of its Cal-O-Rex water heater business. As per their agreement, in the event of a successful sale of Cal-O-Rex, American Standard (and its successors) agreed to pay Seale a percentage of all "Proceeds" derived from the sale. There were four issues before the Court.
The first issue is whether IR is required to pay Seale [Content redacted, and available only to subscribers]
Ingersoll-Rand owns a portfolio of brands — including Club Car®, Ingersoll Rand®, Thermo King® and Trane®. Their products seek to enhance the comfort of air in homes and buildings; transport and protect food and perishables; and, increase industrial productivity and efficiency. They are a global business.
Cal-o-Rex is a manufacturer of water heaters for Mexican-owned Grupo Industrial Saltillo S.A. de C.V., a leading Mexican industrial company. GIS is actually a group of companies based in northern Mexico that manufactures and sells a variety of products for the construction, automotive and home markets. American Standard, Inc. is a global brand, licensed by GIS, and is focused on central-air conditioning systems, plumbing products and electronic braking and control systems for heavy-duty vehicles.
Seale & Associates is a global investment-banking firm focused on mergers and acquisitions, corporate finance advisory and strategy consulting.
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