Milwaukee -- March 23 -- Briggs and Stratton Corp. has filed a lawsuit against Milwaukee Electric Tool Corp. over an alleged breach of contract related to the manufacturing of generators.
Wauwatosa-based Briggs and Stratton, a manufacturer of small engines and outdoor power equipment, is seeking a minimum of $400,000 in damages, according to the lawsuit recently filed in Milwaukee County Circuit Court.
Milwaukee Electric Tool, a Brookfield-based manufacturer of heavy-duty portable electric power tools and accessories, is accused of failing to perform its obligations under a purchase-supply agreement entered into in January 2007.
Under the deal, Briggs and Stratton, through its Power Products Group, agreed to manufacture portable generators that would be sold under the Milwaukee Electric Tool brand name. The initial term of the deal expired on Dec. 31, 2008. Briggs and Stratton purchased inventory and established the production capacity needed to serve Milwaukee Electric Tool, the lawsuit stated.
Milwaukee Electric Tool initially executed a purchase order in March 2008 for 81 generators. The company amended the order in September 2008 to 270 generators, but six months later reduced it to 135, according to the lawsuit.
However, Briggs and Stratton produced 270 generators and was left with 135 unwanted generators, for which it is seeking $142,000 in damages, the lawsuit stated. The company also is seeking $258,000 in damages related to excess and obsolete inventory.
A Briggs and Stratton spokesperson declined to comment and Milwaukee Electric Tool management didn’t return calls seeking comment.
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