American LaFrance Sues Daimler Trucks
Bankrupt fire truck maker American LaFrance LLC (AFL) has sued its former owner, Daimler Trucks North America LLC, alleging that Daimler breached agreements it entered into when it sold off American LaFrance’s assets, Bankruptcy Law360 reported yesterday. ALF’s complaint, filed June 19 in the U.S. Bankruptcy Court for the District of Delaware, also asks the court to disallow a claim of about $12 million filed by Daimler Trucks, formerly known as Freightliner LLC. Freightliner owned AFL from 1995 to 2005. According to the complaint, when Freightliner sold its ALF assets so that ALF could operate independently, it entered into two agreements: an asset purchase agreement and a transition services agreement in which it pledged to help ALF with the transition. During the transition, Freightliner attempted to undermine ALF by failing to disclose necessary information, interfering with ALF’s customer relationships and overcharging ALF for services, according to the complaint.

