Skip to main content

Malibu Boats hit with $3.1 million court judgment

A jury ordered Malibu Boats to pay Marine Power Holding LLC more than $3.1 million following a breach-of-contract dispute.

A jury ordered Malibu Boats to pay Marine Power Holding LLC more than $3.1 million following a breach-of-contract dispute filed in U.S. District Court for the Eastern District of Louisiana.

The jury awarded $1.8 million on Marine Power’s breach-of-contract allegation and an additional $1.3 million in future lost profits based on the jury’s finding that Malibu “acted in bad faith,” according to court documents filed earlier this month.

The jury also ordered prejudgment interest from the date of judicial demand in the amount of $138,302.58, for a total award of $3,238,302.58.

“We were disappointed with the outcome of the case, and while we disagree with the jury’s findings, we respect the process,” Malibu said in a statement to Trade Only Today.

“We are now considering all of our legal options, including appeal. Based on our understanding of the facts, we believe that we have several alternatives available to us and expect that in due time we, along with our legal team, will proceed with our next steps.”

In 2013 Marine Power and Malibu entered a business relationship in which Marine Power would fabricate engines for Malibu, according to the original complaint filed in April 2015.

Marine Power said Malibu had placed a purchase order to build 571 custom engines and later informed Marine Power that it would no longer use the company as a supplier. Marine Power said it had already completed much of the work on the engines.

“Marine Power incurred substantial expenses to perform its obligations,” court documents said. “Marine Power is now confronted with significant damages, owing to Malibu’s breaches.”

The initial complaint accused Malibu of breach of contract and “detrimental reliance,” saying Marine Power had made significant investments in tooling and inventory. “Malibu’s wrongful termination … severely damaged Marine Power,” the complaint said.

Malibu said in its response to the compliant that it terminated the purchase order after Marine Power did not meet certain obligations, such as failing to provide the serial numbers of completed engines.

Related

BOB-CONFERENCE

MMTA Sets Date for Conference

The educational Business of Boating Conference will be held in Foxboro, Mass., with in-person and remote attendance options.

AKZONOBEL

AkzoNobel Nominates Board Member

Ben Noteboom is expected to be elected chair to succeed the retiring Nils Andersen.

MARINE-MARKETERS

Neptune Awards Adds Category

“Boat Show Marketing” will recognize promotional efforts for shows, and entries will be accepted until Dec. 18.

WOMEN-SAILING

Sailing Convention for Women Returns

Postponed during Covid, the event will include on-water training, networking opportunities and workshops.

Norm

MBIA Names Board Members

The Michigan Boating Industries Association elected four new directors and named the officers who will serve next year. Also, the 2023 schedule for “Ladies Let’s Go Fishing!” is taking shape.

CL.YACHTS

CL Yachts Expands Dealer Network

The Hong Kong-based builder added retail locations in Australia, Dubai, Singapore and Macau.

LEGEND.BOAT.FIX

Legend Boats Partners With Boat Fix

The Canadian builder will offer the telematics system, which provides tracking, monitoring and 24-7 service, on new models starting next year.

MARINEMAX

MarineMax Establishes Technology Division

The company’s Boatyard and Boatzon units will operate under the new entity, New Wave Innovations.

SUNTEX

Suntex Purchases New Jersey Facility

Green Cove Marina in Brick is the company’s latest acquisition on the Jersey Shore, joining Channel Club Marina and Key Harbor Marina.