Speed Utv Lawsuit

The Speed RMG Partners vs. Arctic Cat lawsuit over unfulfilled manufacturing contracts concluded with a $47 million settlement for Speed. The case revolved around a breach of contract, with Speed RMG Partners accusing Arctic Cat and Textron of failing to manufacture vehicles based on their designs and not paying the agreed royalties.

Speed sought compensation for the financial losses incurred due to the breach. The trial spanned two weeks and concluded in Speed’s favor, awarding them $47 million in damages.

Speed Utv Lawsuit explanation

The lawsuit between Speed RMG Partners and Arctic Cat revolved around a breach of contract, specifically involving allegations of Arctic Cat’s failure to manufacture vehicles based on the designs provided by Speed RMG Partners. The bone of contention was the Wildcat models, which Arctic Cat allegedly failed to produce as per the agreement, thereby causing a significant dispute.

The lawsuit further accused Arctic Cat of not paying mandatory minimum royalties for unproduced vehicles. It was a clear violation of the contract terms, causing a ripple in the product development and marketing relationship between the two parties. It’s easy to see how this issue could escalate, leading to legal proceedings.

Going by the jury verdict, it seemed the case heavily favored Speed RMG Partners. They awarded both contract and fraud damages amounting to a whopping $47 million.

Parties involved

The Speed UTV lawsuit encompassed an array of key players, including Speed RMG Partners, LLC, Robby Gordon, Todd Romano, Arctic Cat Sales Inc., Arctic Cat Inc., Textron Specialized Vehicles Inc., and Textron Inc.

The plaintiff was Speed RMG Partners, a business that Robby Gordon and Todd Romano jointly own. These individuals are well-known figures in the product development and motorsports industries. The outcome of this lawsuit had a direct impact on Speed UTV, their venture.

On the defendant’s side were Arctic Cat Sales Inc. and Arctic Cat Inc., both subsidiaries of Textron Inc. They, along with Textron Specialized Vehicles, were allegedly involved in a dispute concerning the production of certain products based on designs provided by Speed RMG Partners.

The cause of action

Speed RMG Partners initiated the lawsuit against Arctic Cat on grounds of breach of contract and fraud. The conflict arose when Arctic Cat allegedly failed to fulfill its manufacturing obligations, specifically neglecting to produce vehicles based on the designs provided by Speed RMG Partners. This breach of contract was a significant setback for Speed, as the failure to produce these vehicles not only infringed on their design rights but also resulted in a financial loss.

The lawsuit further accused Arctic Cat of fraud. It was alleged that Arctic Cat had dishonestly reassured Speed RMG Partners of their commitment to the contract, despite knowing they wouldn’t honor it. This deceitful behavior was seen as an attempt to exploit Speed’s designs without providing due compensation.

Relief being sought

Despite the jury’s verdict, Speed RMG Partners aren’t stopping their pursuit of justice just yet. They’re seeking interest on the awarded damages from Arctic Cat, which are expected to reach eight figures. This isn’t just about the breach of contract; it’s about ensuring they receive full relief for the harm caused.

Rutan & Tucker LLP, a renowned law firm, is representing Speed RMG Partners in this pursuit. They’re focusing on securing additional compensation beyond the initial jury verdict. Their aim is clear: to maximize the financial outcome and ensure they don’t walk away with less than what they believe is their due.

Key events and timeline

Here’s a simple timeline of the key events:

1. 2015: Speed RMG Partners files a lawsuit against Arctic Cat, alleging a breach of contract.
2. After several years of legal proceedings, the case goes to a two-week federal trial.
3. The jury verdict is in favor of Speed RMG Partners, awarding them contract and fraud damages.
4. Post-verdict, Speed RMG’s attorneys from Rutan & Tucker LLP express intentions to pursue interest in the award. Textron, initially named in the lawsuit, is dismissed from the action.

Key arguments

Speed RMG Partners claimed Arctic Cat breached their contract by failing to pay mandatory minimum royalties for unmanufactured vehicles. This argument was pivotal in the case and formed a significant part of the jury verdict.

Furthermore, Arctic Cat was accused of neglecting its manufacturing obligations. Speed RMG Partners alleged that Arctic Cat failed to manufacture vehicles based on the designs they provided. This breach was tied closely to product development issues; the lawsuit claimed that Arctic Cat didn’t live up to its end of the bargain in the collaborative relationship.

Current status

1. The verdict: The jury sided with Speed RMG Partners, honoring their claim for significant contract damages.
2. Fraud Damages: On top of contract damages, the jury determined that Arctic Cat was also liable for fraud damages. This additional penalty increased the already substantial verdict.
3. Interest: The legal team at RutanTucker LLP isn’t stopping at the verdict. They’re pushing to secure interest on the awarded damages, further increasing the payout.
4. Victory for Speed RMG Partners: The verdict was a major win for Speed RMG Partners, confirming their position and vindicating their business practices.

Implications

The significant verdict in favor of Speed RMG Partners sends a strong message about the importance of adhering to business agreements and fulfilling contractual obligations. The Speed UTV lawsuit settlement with Arctic Cat has underscored the necessity of honoring manufacturing obligations and highlighted the potential financial repercussions of a breach of contract.