Broyhill must pay $1.25M in contract dispute
August 16, 2011 | 9:13 am CDT
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DALLAS - Broyhill Furniture Industries must pay $1.25 million to Tyler, Texas-based furniture liquidator Southwest Furniture Brokers for failure to comply with a contract.

A Dallas County jury found the Lenoir, NC-based Broyhill failed to comply with the terms of a verbal contract it made with Southwest Furniture Brokers. The lawsuit stems from an incident in 2007, when Southwest Furniture agreed to conduct a $20 million Broyhill Manufacturer's Sale in Grapevine, TX. According to claims, Southwest was forced to close its operations in Tyler in order to prepare for the six-month sale. As part of the agreement, Southwest was promised a 10 percent commission on sales.

Rose•Walker attorneys Ross Cunningham and Chris McDowell, on behalf of 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.

Broyhill is part of Furniture Brands International, the world's largest manufacturer of residential furniture and the parent company of Lane, Thomasville, Henredon, Drexel Heritage and Maitland-Smith. Broyhill's product line includes both residential and contract divisions, manufacturing bedroom, dining room, occasional tables, wall systems home entertainment, home office and  upholstered furniture.

Posted by Karen Koenig

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