After Canadian manufacturer Stackpole International filed a lawsuit against Husco International late last week, alleging a contract dispute had led Stackpole to temporarily shut down production at one of its facilities, Husco has agreed to resume supplying the business.
According to the lawsuit filed last Wednesday in U.S. District Court, Husco supplies Stackpole with three “critical” automotive parts. Stackpole alleges that Husco abruptly stopped supplying the company with one of those critical parts on Dec. 8.
The complaint alleges that after Stackpole sought to end its agreement with Husco related to the part in question, Husco stopped supplying Stackpole with several other unrelated automotive parts. This allegedly led Stackpole to temporarily shut down one of its production facilities.
Husco declined to comment on the lawsuit.
According to a stipulation order filed Dec. 16, Husco has agreed to immediately resume supplying Stackpole with the needed parts -- automotive solenoid valves.
However, Husco still claims it is entitled to $1.5 million in termination damages due to Stackpole seeking to end the agreement related to the automotive valves. Stackpole alleges it “lawfully terminated” the agreement. Stackpole is requesting that Husco conduct an audit in relation to termination damages being sought. To resolve the termination issue, Stackpole has agreed to pay half of the $1.5 million by Dec. 31.
Stackpole will then provide any information needed to Husco so that the company can have a third party complete and audit within a 30-day period. Following completion of the audit, Stackpole will pay the remaining half of the $1.5 million.