Experience
Deep knowledge of your business's most important issues.

Distributor Termination Secured for Goulds Pumps

Foley secured a major victory for Goulds Pumps, Inc., a manufacturer of industrial pumps, and flagship subsidiary of ITT Corporation. Over the last decade, Goulds Pumps has become one of the leading industrial pump manufacturers for the North American oil and gas market, due in large part to its state-of-the-art API (American Petroleum Institute) pumps. In December 2013, Goulds Pumps’ biggest distributor, DXP Enterprises, Inc., announced its plan to acquire B27, LLC. However, PumpWorks 610, a division of B27, also manufactures API pumps, selling them in the same territory as that granted to DXP under the parties’ distribution agreement. Despite being warned by Goulds Pumps not to acquire B27 DXP completed the purchase in January 2014, prompting Goulds Pumps to file an arbitration demand in April 2014, seeking a declaratory judgment that it had the right to terminate DXP as a distributor. After DXP’s failed TRO attempts in both state and federal court in Texas, arbitration began in earnest in September 2014. A year later, and after a seven-day hearing with testimony from 12 witnesses and rounds of post-hearing briefings, the arbitrator held that, under the Texas Dealer Act, Goulds Pumps did indeed have good cause to terminate DXP.