Almo Appliances

Why Does this Stuff Always Happen In Florida I (see March 2006 for II)

Florida distributor ARD, ARD Pres. Chuck Asarnow, Alfresco BBQ parent SES Brands, and SES president Jeffrey Bernstein are defendants in a suit filed by Florida distributor Alvent Distribution.  Let's take a swing at explaining it.
The Agreed Facts:

  • Fisher & Paykel cancels all of its DCS BBQ distributors, including ARD in October 2004
  • ARD reaches agreement with SES Brands for its Alfresco brand BBQ, at that time distributed by Alvent.  
  • SES terminates Alvent's distribution agreement Dec 31, 2004.  ARD starts distributing Alfresco Jan 1, 2005. Alvent forms a relationship (of some kind) with BKE Supply, owner of the Vintage brand, which is OEM manufactured by SES.  As these links show, the Alfresco line is virtually identical to the Vintage line, to the extent that I'm not sure that these are two different photo shoots. (Links open in new windows)
              
    Alfresco
               Vintage

Facts in Contention:

  • The official complaint by Alvent says that a distribution contract with BKE existed for the Vintage line.  Documents attached to the complaint seem to lend credence to the contention that some sort of business relationship existed (see documents linked below).  The complaint claims that Alvent contacted BKE for the Vintage line at the prodding of SES and as a substitute for the Alfresco line.
  • BKE president, Don Henry, in a conversation with ApplianceAdvisor July 11, said that no contracted distribution agreement with Alvent had been finalized and that no business relationship exists or existed, and further that the Vintage brand has never had distribution in Florida.
  • The official complaint by Alvent says that ARD pressured SES, and that a conspiracy existed between ARD and SES to force BKE to terminate its distribution agreement with Alvent.  Alvent claims to have learned this from BKE president Don Henry.
  • A source familiar with SES stated that a long business relationship with BKE has existed and that SES and BKE have a commonsense understanding not to hurt one another, but no contractual veto over distribution territory exists.

Alvent bases their claim to a distribution contract with BKE on these documents.
UPDATE:  July 12.  Upon closer inspection of the dates of the documents below, we have changed our observations.
          
BKE Letter to all Vintage Distributors January 12, 2005
           BKE Letter to Alvent March 4, 2005
The January 12 document is a much clearer indication that Alvent was the Florida distributor, but no signed distribution agreement was included in the complaint, so we assume that none exists.  Is it unusual to be appointed distributor without a formal contract?
The March 4 document in the very first line, "Here is where we are as I see it", says that this could be mid-negotiation.  Though it could also be a post-agreement "getting up to speed" or, "what we now expect from our new distributor".  Now that we see the dates, this March 4 document seems to greatly soften the granite-like solidity of January 12 document.
A judge will need to judge.


BKE was not named in the suit, but BKE is most directly involved with Alvent and seems to be the likeliest defendant.  If Alvent hoped to use BKE in order to reach SES and ARD, our conversation with BKE on July 11 was not promising.  

  • Can Alvent prove it was a distributor, without BKE's support of this contention?
  • Can Alvent prove that ARD and SES conspired to oust Alvent as a BKE distributor, also without BKE's support of this contention.
  • Assuming Yes and Yes, were laws broken?

Florida has a wonderful judicial system, they'll figure it out.