Concern about the fluid was first realized in 2006 when the plaintiffs experienced an inordinate number of repeated repairs and warranty claims. Specifically, C-Bam Enterprises (dba as Gattshalls Transmission), reported it became concerned about the ATF when a transmission required rebuilding only weeks after a prior rebuild. In addition, they noticed the fluid was discolored. C-Bam had the ATF tested and found it had very high levels of silicon and other contaminants. Silicon is typically associated with such abrasive materials as sand and dirt. Laboratory testing by Renco and Malco found similar results on the ATF it received from Corrigan.

Corrigan was made aware of this concern by the plaintiffs and reportedly indicated it had heard similar complaints from other customers and would investigate and respond to the concerns.

Although Corrigan reportedly drafted a letter on October 31, 2006 advising its customers about the issue and of a recall on the product, the letter was not sent. The decision to take no further action was based on discussions Corrigan had with its management team and insurer AIG.

The plaintiff's lawsuit alleged that it had installed the ATF in question in approximately 650 cars and had to recall close to 235. In addition, they incurred a cost of $750,000 to rebuild the affected transmissions.

Following one day of deliberation, a jury concluded Corrigan was negligent in its handling of the ATF and that its breach of implied duties of fitness and merchantability of the ATF resulted in the damages set forth in the claim. As a result, it awarded the plaintiff's $2.9 for direct damages, lost profits and damage to the plaintiff's reputation resulting from the negative publicity it received.

Interestingly, the jury rejected Corrigan's claims against its supplier of the ATF.

Based on JobbersWorld's read of the court documents, we suspect this case is not over. In fact, Corrigan Oil is reportedly planning to file a motion for a new trial. It will be interesting, and certainly educational to see where the buck (and legal action) stops in the supply chain, and why it stops where it does in this case. Moreover, as this plays out, there may be plenty to learn about what lubricant distributors can do to avoid finding themselves in a similar position. JobbersWorld will keep you posted.

With regards to how the money awarded will be allocated, the Judge says, "To me it is a giant mess, and I'm concerned about it." Click link below for more on this matter.

Due to an unexpected glitch in our software, the story was truncated before it got to a number of insightful comments from Paul Lyden, the Vice President of Lyden Oil about the new product and re-refined oil.

Please click on the link below for the full version of the story.

In addition to expanding its use of biodiesel, and retrofitting cargo-handling equipment with diesel emission control devices, the Authority will incorporate the use of BIOBLEND lubricants. BIOBLEND lubricants, produced by BioBlend in Joliet, IL are formulated from environmentally responsible chemistries that are produced from renewable resources.

The N.C. Ports Authority will switch to BIOBLEND lubricants in an effort to address concerns about the potential dangers petroleum-based lubricants present to the environment when accidental leaks or spills occur. BIOBLEND lubricants are made from vegetable base oils and bio-friendly additives. This combination is considered biodegradable.