Bonfiglioli USA v. Midwest Engineering Component

Case Background

On January 27, 2023, Bonfiglioli USA Inc. filed a lawsuit against Midwest Engineered Components, Inc. for fraudulent inducement in the United States District Court, Kentucky Eastern (Covington). The case was assigned to Judge Danny C. Reeves and referred to Magistrate Judge Candace J. Smith. [Case number: 2:23cv14]

Cause

Bonfiglioli USA, based in Hebron, Kentucky, operates as a subsidiary of its Italian parent company. It manufactures electrical components and gear parts for automated manufacturing. In 2019, it signed an agreement with Midwest Engineer Components (MEC), a sales agency in Burnsville, Minnesota, making MEC its sales representative in the Upper Midwest.

A year later, the parties amended the contract to include another state. Under the new terms, Bonfiglioli USA agreed to pay MEC commissions on sales from the territory, even if MEC did not generate them. This arrangement acknowledged MEC’s efforts an