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Contract row ends in lVinorplanefs favour
Page 6
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LEICESTER-BASED haulier Widdowson Group has been forced to pay out over £70,000 to telematics supplier Minorplanet Systems after refusing to let the firm finish fitting its tracking system to its fleet.
Widdowson Group ordered Minorplanet's VMI tracking system for its 100-strong fleet last year. But before the installation was completed Widdowson's Scania dealer warned that the way the systems were being fitted could invalidate vehicle warranties.
Widdowson Group stopped Minorplanet from finishing the job and Minorplanet subsequently initiated legal action against the haulier for breach of contract, seeking over £100,000 in damages. Widdowson Group reacted with a counterclaim of £35,000 to cover the costs of having its vehicles made good.
The two parties have settled their differences out of court with Widdowson Group paying Minorplanet Systems £75,000.
Widdowson Group director Peter Stevenson says his firm had no choice but to pay up:"We were advised by a barrister that their paperwork was watertight and that we had only a 50/50 chance of defending the claim, plus only about an 80% chance of pursuing our own claim.
"Having found out where we stood legally, we were facing a bill of around 035,000 plus costs so I'm quite happy to have got out with costs of just £75,000."
The fleet has since been refitted with the Cablink system from Road Tech Computer Systems.
A spokesperson for Minorplanet Systems confirms the dispute had been settled out of court but declined to comment further.