Jobbers World News
September 22, 2009

  • Jury Awards $2.9 Million For "Defective Transmission Fluid"
  • Farrell Oil goes "Green" with Safety-Kleen
  • More on Lyden's ProGuard ECO
  • Hang On to Your Hats!
  • BioBlend at the N.C. Ports Authority
  • Contact Us With Your News

  • Jury Awards $2.9 Million For "Defective Transmission Fluid"

    An award was handed down in the Jackson County Circuit Court in Michigan for $2.9 million last month following a lawsuit against Corrigan Oil Co. The lawsuit, filed by plaintiffs C-BAM Enterprises, Inc., MTDC Enterprises, Inc./Renco Transmissions, and Malco Automatic Transmissions, Inc. asserted that Corrigan Oil supplied them with defective transmission fluid. And as a result of the defective ATF, damage was done to the transmissions of their customers.

    Concern about the fluid was first realized in 2006 when the plaintiffs experienced an inordinate number of repeated repairs and warranty claims. Specifically, C-Bam Enterprises (dba as Gattshalls Transmission), reported it became concerned about the ATF when a transmission required rebuilding only weeks after a prior rebuild. In addition, they noticed the fluid was discolored. C-Bam had the ATF tested and found it had very high levels of silicon and other contaminants. Silicon is typically associated with such abrasive materials as sand and dirt. Laboratory testing by Renco and Malco found similar results on the ATF it received from Corrigan.

    Corrigan was made aware of this concern by the plaintiffs and reportedly indicated it had heard similar complaints from other customers and would investigate and respond to the concerns.

    Although Corrigan reportedly drafted a letter on October 31, 2006 advising its customers about the issue and of a recall on the product, the letter was not sent. The decision to take no further action was based on discussions Corrigan had with its management team and insurer AIG.

    The plaintiff's lawsuit alleged that it had installed the ATF in question in approximately 650 cars and had to recall close to 235. In addition, they incurred a cost of $750,000 to rebuild the affected transmissions.

    Following one day of deliberation, a jury concluded Corrigan was negligent in its handling of the ATF and that its breach of implied duties of fitness and merchantability of the ATF resulted in the damages set forth in the claim. As a result, it awarded the plaintiff's $2.9 for direct damages, lost profits and damage to the plaintiff's reputation resulting from the negative publicity it received.

    Interestingly, the jury rejected Corrigan's claims against its supplier of the ATF.

    Based on JobbersWorld's read of the court documents, we suspect this case is not over. In fact, Corrigan Oil is reportedly planning to file a motion for a new trial. It will be interesting, and certainly educational to see where the buck (and legal action) stops in the supply chain, and why it stops where it does in this case. Moreover, as this plays out, there may be plenty to learn about what lubricant distributors can do to avoid finding themselves in a similar position. JobbersWorld will keep you posted.

    With regards to how the money awarded will be allocated, the Judge says, "To me it is a giant mess, and I'm concerned about it." Click link below for more on this matter.

    Farrell Oil goes "Green" with Safety-Kleen

    Farrell Oil. located in Wilton, NY,, announced it has added Safety-Kleen's EcoPower Engine Oil to the portfolio of lubricants it markets. According to Chris Ferrell, President of Ferrell Oil, "Ferrell Oil is excited about this opportunity and the potential that EcoPower brings to our portfolio of brands. I am reminded every day from my four children just how important it is to be kind to our environment and recycle!"

    Chris adds, "The younger generations know the importance of a "green" community and I am proud to know that Farrell Oil will now be doing its part when it comes to lubrication and recycling."

    About Ferrel: Farrell Oil is a second generation family run company that has been distributing quality lubricants in Upstate New York since 1977. Based in Wilton, NY with a second location in West Hurley, Farrell Oil specializes in solving problems for its customers by providing products, programs and service that are unparalleled in the industry.

    More on Lyden's ProGuard ECO

    In the August 25, 2009 issue of JobbersWorld we reported that Lyden Oil was going green with it's new "ProGuardŽ ECO" lubricants made from high quality re-refined oil.

    Due to an unexpected glitch in our software, the story was truncated before it got to a number of insightful comments from Paul Lyden, the Vice President of Lyden Oil about the new product and re-refined oil.

    Please click on the link below for the full version of the story.

    Hang On to Your Hats!

    The results of JobbersWorld's recent survey about how marketers view the quality of lubricants in the marketplace will be released at the end of the week. The results are very eye opening.

    BioBlend at the N.C. Ports Authority

    The North Carolina Ports Authority is taking on a number of initiatives to conduct its business in a "greener" way. These efforts will reportedly reduce emissions by more than 50% and help to minimize risks associated with accidental oil leaks and spills.

    In addition to expanding its use of biodiesel, and retrofitting cargo-handling equipment with diesel emission control devices, the Authority will incorporate the use of BIOBLEND lubricants. BIOBLEND lubricants, produced by BioBlend in Joliet, IL are formulated from environmentally responsible chemistries that are produced from renewable resources.

    The N.C. Ports Authority will switch to BIOBLEND lubricants in an effort to address concerns about the potential dangers petroleum-based lubricants present to the environment when accidental leaks or spills occur. BIOBLEND lubricants are made from vegetable base oils and bio-friendly additives. This combination is considered biodegradable.

    Contact Us With Your News

    JobbersWorld is all about issues impacting lubricant distributors. You are our primary audience and you are the ones we need to hear from. What's on your mind? What issues would you like to see us tackle? And what news would you like others to know about?

    • News
    • Mergers and acquisitions
    • Promotions
    • New products
    • Classified

    We reach out to nearly 10,000 participants in the lubricant distribution supply chain once or twice a week (depending on what's NEWS) and we tell it like it is.

    Please contact us via e-mail at tom_glenn@jobbersworld.com, or direct at 732-494-0405.

    Thank you


    Join our mailing list!

    Email Marketing by