Larry Thomas -- Furniture Today, February 23, 2012

MORGANTON, N.C. — A Burke County Superior Court jury has awarded a former Drexel Heritage dealer $537,000 in damages after finding that Drexel, a division of Furniture Brands International, breached its dealer agreement.

Following a six-day trial, the jury found that Drexel failed to give Hamilton Park Interiors of Murray, Utah, adequate notice that the dealer agreement was being terminated.

Hamilton Park contended that Drexel ended the dealer agreement without warning in 2008, and almost immediately signed a new agreement with a competing retailer in the area.

Robert King, a Greensboro, N.C., attorney representing Hamilton Park, said jurors determined that Drexel should have given his client one year's notice prior to halting shipments.

"The pivotal issue in this case was whether they had provided reasonable notice (before terminating the dealer agreement)," King said, noting that the damage award was based on the lack of a one-year notification.

Jon Botsford, senior vice president and general counsel of Furniture Brands International, said the company plans to appeal the verdict. He noted that several other claims against Drexel were dismissed, and said the trial judge ruled that Hamilton Park should pay the company approximately $36,000 to cover unpaid bills for merchandise shipped before the dealer agreement was terminated.

"We believe that the single claim considered by the jury and found against Drexel will be reversed on appeal," Botsford said.

The case stemmed from a lawsuit Drexel filed against Hamilton Park in late 2010 seeking payment for unpaid bills. The retailer filed a counter-claim in January 2011, accusing Drexel of violating the terms of a 1999 dealer agreement.