HM Plant retrains Hitachi role

HM Plant has won its legal battle to remain the UK distributor for Hitachi-based excavators and its contract with CNH has been terminated.

At a judgement read out in the High Court in London, Mr Justice Morrison also awarded HM Plant costs.

The dealer successfully argued that its original dealership agreement, dating back to 1988, was set up to allow HM Plant to continue selling small, medium and large excavators based on Hitachi technology.

A statement released by HM Plant said: "Fiat took legal action trying to prevent HM Plant dealing in equivalent range machines and to force us, through aggressive litigation that brought with it the threat of financial ruin, to take Fiat Kobelco products. The court expressed the view that Fiat Kobelco's attempted coercion of HM Plant in this regard was a major breach of contract, and that HM Plant had validly and rightfully terminated its contract as a result."

Giuseppe Ferrulli, Fiat Kobelco's sales and marketing vice president, told PMJ the company had expected the result under English law adding that the contract was drafted under Italian law and the manufacturer was considering an appeal. He said that any discussions to appoint alternative dealer(s) were on hold until that decision had been made.

In Scandinavia, Fiat Kobelco products are being distributed through the existing Kobelco network and one of the UK's Kobelco dealer, Molson, has expressed an interest. Molson director Jonathan Wilson said his company would be happy selling both brands.