Fire truck manufacturer sued by sales companies over multi-million dollar Chinese contract

Kyle Barnett Feb. 21, 2012, 10:28am

DONALDSONVILLE – A Livingston Parish fire equipment manufacturer is being sued by a pair of Ascension Parish business partners responsible for sales in China.

Red Star Consultants and Fepro Fire Protection filed suit on Feb. 6 in 23rd Judicial District Court against Ferrara Fire Apparatus, Inc.

The plaintiffs contend they had entered into an agreement with Ferrara to provide fire trucks to the fire department of a Chinese city and that the defendants did not fully honor the contract by providing documentation necessary to clear the sale through the complex Chinese customs system.

The plaintiffs contend they traveled to China at a great cost to facilitate the sale of modernized fire trucks and were expecting a three percent commission on sales valued around $3.7 million.

The plaintiffs assert the manufacturer accepted a 90 percent payment on the order and delivered the trucks, but the trucks are being held in customs in China because the defendant has not provided documentation necessary for the completion of a customs certificate.

The plaintiffs further allege the defendant has not remitted the commission for the sale and has also abandoned pursuing a customs certificate as well as all Chinese sales. The plaintiffs also contend they will be held responsible if the transaction cannot be completed, which may affect the potential for them to transact further business in the country.

Damages sought include commission in the amount of $86,970 for Red Star Consultants and commission in the amount of $567,205 for Fepro Fire.

The plaintiffs are being represented by Christian T. Avery of Gonzales and Al J. Robert of New Orleans.

The case has been assigned to Division B Judge Thomas Kliebert, Jr.

Case number 102666

More News