Alessi Equipment of Mount Vernon awarded $1.4M for tool discounts

A manufacturer has been ordered to pay Alessi Equipment Inc. of Mount Vernon $1.4 million for violating its sales territory and withholding discounts on construction equipment sales.

On Dec. 30, U.S. Magistrate Judge Judith C. McCarthy tacked  $490,118 in interest onto a $920,847 judgment that a federal jury awarded Alessi last June against American Piledriving Equipment Inc. of Kent, Washington.

American Piledriving (APE) describes itself as the world leader in deep foundation construction equipment, such as pile drivers that are attached to cranes and excavators.

Alessi Equipment, owned by Gerry Alessi, sells hydraulic tools that are attached to excavators for use on construction and demolition projects. It has been buying and reselling APE tools and parts since the 1990s, according to court records.

The arrangement was formalized in a 2004 memo and a 2012 distributor agreement that granted Alessi exclusive rights to sell APE products in the 10-state Northeast territory and parts of Canada. The memo referred to a 20% discount.

Alessi alleged in a 2018 complaint that APE violated the deal by not discounting the products by 20% and by selling them directly to customers in the Northeast, including, for instance, a $163,000 purchase by Moncon Inc. construction company of Mount Vernon

McCarthy ruled a year ago that Alessi was entitled to summary judgement on a breach of contract claim and then put the case before a jury in a four-day trial to determine the damages.

APE asked McCarthy to reduce the damages or order a new trial, arguing that the jury’s $920,847 determination was excessive. McCarthy denied the motion and APE has appealed her decision to the U.S. Court of Appeals.

McCarthy also ruled last year that Alessi had to pay APE $52,506 on a breach of contract counterclaim. On Dec. 30 she tacked on $22,418 in interest, bringing the total damages to $74,924.

Alessi stopped selling APE equipment around 2017. Now, including the offset for the judgment in APE’s favor, the Mount Vernon company is entitled to more than $1.3 million.

Alessi was represented by attorneys Kristopher M. Dennis and Keith A. Lavallee. APE was represented by Brian D. Waller.