Hoffman Estates, IL, U.S.-based Sears, Roebuck and Co. will receive U.S. $10.8 million from Emerson, the electronics, appliance, and tool manufacturer, following a settlement ordered by a U.S. District Judge.
In August 2002, Sears filed a lawsuit in federal court in Chicago, alleging that Emerson had used Sears machinery and plans to produce benchtop and stationary tools for Home Depot.
Emerson had produced Craftsman-brand benchtop and stationary tools for Sears until a 30-year agreement ended in 1998. Sears has said that, at that time, Emerson should have returned the $35 million in machinery it was provided by the retailer.
"We are pleased we have reached this settlement with Emerson," Chris Brathwaite, a Sears spokesman, said. He added that Emerson continues to produce hand-held power tools for Sears.
Under the terms of the settlement, Emerson will forgive $1.3 million in Sears debt. Emerson will also pay Sears $4 million in cash along with $5.5 million in rebates through contracts for tools and vacuums. (Home Channel News)
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