Jury Awards $1.25 Million Against Broyhill

June 8, 2011  by in UnCategorized   

By Home Furnishings Business in Legal on June 9, 2011

A Dallas, Texas, jury has awarded furniture liquidator Southwest Furniture Brokers almost $1.25 million in a suit against Broyhill Furniture.

The jury decided that Lenoir, N.C.-based Broyhill failed to comply with the terms of a verbal contract it made with Southwest Furniture Brokers, Tyler, Texas; and that a Broyhill vice president committed fraud and awarded a total of $1,245,000, including attorneys' fees.

According to an announcement of the award, in 2007, Southwest Furniture agreed to conduct a $20 million Broyhill Manufacturer's Sale in Grapevine, Texas. In order to prepare for the six-month sale, Southwest was forced to close its operations in Tyler. As part of the agreement, Southwest was promised a 10 percent commission on sales. Attorneys for Southwest Furniture argued that Broyhill breached the agreement by, among other things, failing to provide the amount of merchandise it promised to make available for the sale. Broyhill also conducted a competing $20 million sale at Big Lots.

"This is not the way you do business and I'm glad the jury saw it that way," said Ross Cunningham, a partner in the trial law firm Rose Walker. "In business, if you promise to do something, you have to do it."

Broyhill parent company, St. Louis-based Furniture Brands International, responded that the case is not over.

"A final judgment has not been issued," said Lisa Hanly, director of media relations at Furniture Brands. "We expect to make substantial post-judgment filings and cannot comment until final judgment has been issued."