Court finds RBC Bearings improperly terminated SKF contract

SKF USA Inc. announced September 2 that following a 16-day trial in Connecticut state court, the court found for SKF and against RBC Nice Bearings Inc. on RBC's claim that SKF had breached the parties’ sales and supply contract that made SKF the exclusive distributor of Nice bearings to the industrial aftermarket.

RBC had terminated SKF's distributorship in June 2006 and filed suit against it alleging that SKF had failed to comply with the contract’s payment terms. The suit demanded money damages and an injunction prohibiting SKF from selling Nice products.

In its decision handed down, the Connecticut state court found that RBC had improperly terminated SKF's contract and threw out all of its claims. In the court's words, "When [RBC] decided that it was to its business advantage to end the relationship, it used the original sales figures as a pretext for improperly terminating the contract." Despite the ruling in its favor, SKF no longer distributes Nice bearings except for those remaining in its inventory.

SKF USA Inc. is headquartered in Lansdale, Pa.

About SKF
SKF Group is the leading global supplier of products and solutions within the areas of rolling bearings, seals, mechatronics, lubrication systems, and services. Services include technical support, maintenance services, condition monitoring and training. SKF is represented in more than 130 countries. The company has more than 120 manufacturing sites, and sales companies supported by some 15,000 distributor locations. SKF also has a widely used e-business marketplace and an efficient global distribution system.