PELL CITY, Ala. — Alabama Boating Centers, which operates several boat dealerships in Alabama, recently filed suit against Textron Financial Corporation accusing the company of fraud, according to court documents filed in an Alabama circuit court.
The suit alleges that Textron misrepresented its intention to exit the marine industry while negotiating a modification to Alabama Boating Centers’ finance agreements in October 2008.
“Much like a magician, the Textron Defendants in one hand assured Plaintiffs that the Textron Defendants remained firmly committed to the Marine Industry and would continue to provide financing or loans to Plaintiff for many years to come,” the complaint reads, “yet in the other hand, Plaintiffs must allow a change in the financing or increase in the costs of financing.”
In response, Textron filed a complaint in Rhode Island’s U.S. District Court on June 1 accusing Alabama Boating Centers of breach of contract for failing to pay its financial obligations to the company. The complaint asks for in excess of $1 million in outstanding payments, including more than $100,000 in interest.
Boating Industry will have more on the cases as they develop.